It audit manual volume iii 68 it audit manual no 89

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Unformatted text preview: r? Stock usage? Losses? Disposals? Inventory System Requirements (Program planning and monitoring function) 87. Does the system establish price computation models or formulas to be used in the Bill Calculation activity? Pricing models for entities are usually based on costs incurred, but may be based on other factors, such as specific norms and regulations for the agency, utility, and condition. 88. Does the system provide methods to support pricing by groupings or commodities of items? IT Audit Manual Volume III 68 IT Audit Manual No 89. Item Does the system identify separate methods of pricing needed based on statutory authority or other agency policy? For example, the pricing method used may depend on the nature of the customer/consuming agency, such as within the same agency, another Government agency, corporation etc. 90. Does the system establish methods or formulas to be used in valuing and accounting for inventory based on cost? Costs to be considered for inventory held for sale include appropriate purchase, transportation, and production costs incurred to bring the items to their current condition and location. 91. Does the system establish appropriate cost methods that apply to the various types of inventories held by an agency? Different methods might also be needed for inventory held for sale/issue based on the type of items, such a medical supplies, perishable goods, and hazardous materials. 92. Does the system establish methods to maintain the net realizable value of inventory items? 93. Does the system establish methods or formulas to be used in valuing and accounting for inventory in the process of production based on cost? Costs to be considered for inventory in repair or in the process of production (work in process) include materials, labour, and overhead used to convert the items to a finished product. 94. Does the system establish appropriate cost methods that apply to the various types of inventories involved in the production process? Different methods might be needed to assign costs to raw materials, work in process, and finished goods in a manufacturing entity. 95. Does the system establ...
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This note was uploaded on 10/27/2013 for the course LAW 10-100 taught by Professor Parsons during the One '10 term at Bond College.

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