Internal audit program inventory

Based on ACL reports, document inventory greater than , , and days. Document method for estimating reserve for excess and obsolete inventory. Agree significant components to supporting documentation.

Document inconsistencies, if any, between the calculation and aging analysis. Ensure authorized persons adequately approve provisions or write-offs.

Review for evidence of approval of inventory write-offs before they are recorded. Consignment Inventory 1. Document policies and procedures for consigned inventory. Document compliance with Corporate Policy on consigned inventories.

Scrap 1. Document method for accounting for inventory scrap. Through inquiry and observation, ensure that scrap proceeds are collected from the scrap vendor promptly after the collection of scrap materials. Through inquiry and observation, ensure that approval is granted before materials are sent to scrap.

Through inquiry and observation, ensure that accounting and the warehouse verify the weight of the scrap materials. Through inquiry and observation, verify that scrap vendors are selected through a bidding process. Shipping and Receiving Including Returns 1. For the most recent quarter-end, obtain the last and first 3 shippers and receivers and agree pertinent data to accounts receivable and inventory records ensuring that transactions are recorded in the proper period.

Explain the facility's procedures for ensuring proper cut-off. General 1. Through inquiry and observation confirm that Management Corrective Action Plans have been implemented. If not, obtain explanation s and consider the necessity of including in current year audit report.

Complete Global Best Practices checklist. Complete inventory diagnostic. Download Word Document. Posting Komentar. Review and test inventory count procedures and count results 1 Obtain stock count procedures. Review inventory carrying values for reasonableness and accuracy 1 IAS 2 Requires that inventory is valued at the lower of; a Cost b Net Realizable Value 2 Group the materials to the following categories and carry out tests for each category: a Raw materials b Work in Progress c Finished Goods.

Excel summaries are not acceptable for this test and must be reconciled to source schedules. Variances should be quantified and reported, and root causes identified and reported. Material receipt and validation 1 Is the person receiving stock at all receiving stations aware of signing mandates for LPOs? The store receivers should have specimen signatures of LPO approvers. What is the average life received by material? Segregation of Duty over receipt, validation, custody, issues and count Resolution of stock variances 1 Identify how variances noted during stock count are resolved.

Economic evaluation of road investment proposals: valuing travel time savings for freight. Click here to sign up. Download Free PDF.

Jackson Basu. A short summary of this paper. This should be presented diagrammatically. Also indicate individual who carries out that transaction.

Identify deliveries with excessive delivery time. Review and test inventory count procedures and count results 1 Obtain stock count procedures. Review inventory carrying values for reasonableness and accuracy 1 IAS 2 Requires that inventory is valued at the lower of; a Cost b Net Realizable Value 2 Group the materials to the following categories and carry out tests for each category: a Raw materials b Work in Progress c Finished Goods.