AP No.
AP-25-MII-001
AUDIT PROGRAM
Date April 30, 2025
Revisio -
INVENTORY – MEATWORLD n
INTERNATIONAL, INC. Author Harold Dan
Acebedo
Page 1–2
I. OBJECTIVES
A. Verify inventory balances of meat products against physical counts and system records.
B. Ensure accuracy and completeness of meat inventory records at a specific cut-off date.
C. Confirm internal control procedures related to cold storage, FIFO compliance, spoilage, and handling.
D. Assess efficiency of meat turnover, storage, and waste management.
E. Validate compliance with past audit findings and food safety standards.
II. SCOPE
As determined per Audit Plan
III. PROCEDURES
PROCEDURES WP Est. Actu
Ref. Hour al
s Hour
s
I. PRELIMINARY STAGE
A. Prepare an Engagement Letter .5
Formally notify the Meatshop Operations Department of the scheduled
audit.
B. Conduct a Kick-Off Meeting .5
With Store Manager, Inventory Custodian, Butchers, and QA
personnel.
Discuss audit scope, physical count schedule, food handling
practices, and traceability.
II. EXECUTION STAGE
Specific Audit Procedures:
1. Obtain and review the system-generated inventory listing
a. Cross-foot the list and verify units of measure (kilos, packs, pieces).
b. Reconcile with General Ledger or POS inventory summary.
c. Identify high-risk items (high-value or highly perishable).
2. Conduct Physical Count
a. Randomly select fresh, frozen, and processed meats.
b. Validate recorded weight vs. actual weight.
c. Document discrepancies and obtain explanation from store
Inventory – Meatworld International, Inc. Page 1
PROCEDURES WP Est. Actu
Ref. Hour al
s Hour
s
personnel.
3. Trace Inventory Movements
a. Review Receiving Logs, Purchase Receipts, and Meat Inspection
Certificates.
b. Review Issuances for display, production, or spoilage.
c. Reconcile inbound and outbound inventory.
4. Assess Valuation and Shelf Life
a. Confirm pricing (cost per kilo, per tray, etc.) and expiry dates.
b. Verify FIFO practices are enforced for thawing and selling.
c. Review adjustments for spoilage, shrinkage, or waste.
5. Check Storage and Handling Compliance
a. Inspect cold storage temperature logs.
b. Confirm sanitation logs and pest control schedules.
c. Validate segregation between raw and cooked meat.
6. Perform Analytical Procedures
a. Inventory Turnover = COGS / Average Inventory
b. Spoilage Ratio = Spoiled Inventory / Total Received
c. Yield Loss = (Weight loss from butchering / Starting weight) × 100
7. Discuss audit findings with Operations and QA team.
8. Organize audit working papers.
COMPLIANCE REVIEW
Audit Objectives
a. Confirm presence and application of internal controls in meat inventory
handling.
b. Assess adherence to food safety standards (BFAR, NMIS, DOH).
Specific Procedures
1. Review Inventory SOPs related to storage, thawing, and cutting.
2. Check daily inventory count and reconciliation procedures.
3. Test controls on expiry tracking, FIFO, and returns to supplier.
4. Assess management oversight on spoilage approval and disposal
documentation.
5. Review calibration and monitoring of cold storage units.
6. Summarize noted findings.
7. Finalize and organize working papers.
III REPORT WRITING STAGE
.
A. Prepare Audit Point Sheet
B. Exit Conference
C. Final Report
Total Number of Hours Spent
Inventory – Meatworld International, Inc. Page 2