26 does the system classify inventory items by

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Unformatted text preview: e acceptance or rejection of new or returned items at their destination and the quantities of each? Does it update inventory on hand information as a result? 24. Does the system identify shipping discrepancies and product quality deficiencies between the items received and the information provided on shipping documents and purchase orders? Does it support the follow-up on discrepancies conducted by the procurement and finance offices? 25. Does the system identify the intended location of the item and track its movement from the point of initial receipt to its final destination? 26. Does the system classify inventory items by commodity class to meet agency needs for management and control? 27. Does the system maintain sufficient information to support the inventory valuation method chosen in the Program Planning and Monitoring function (e.g., historical cost using First-In First-Out (FIFO), weighted average, or moving average cost flow assumptions or the latest acquisition cost)? 28. Does the system allow the cost of an item to include all appropriate purchase and transportation costs incurred? 29. Does the system provide financial information in the appropriate format and using the appropriate method to other financial management systems used by the agency? 30. Does the system provide information needed to support reconciliation between the inventory system's records and other systems' records? 31. Does the system provide support for physical verification of inventory balances by location and type? 32. Does the system record changes in the location of an inventory item, such as from one warehouse to another, and any associated changes in the person or organization responsible for stewardship of the item? IT Audit Manual Volume III KD Reference 63 IT Audit Manual No 33. Item Does the system record changes in physical condition (e.g., excellent, good, fair, or poor), quantities, etc., based on the results of physical inventory verifications? 34. Does the system provide for the matching of physical counts with inventory quantity and financial records...
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