PBV Audit Program for Inventories
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ScribdTranslationsPBV Audit Program for Inventories
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ScribdTranslationsAUD 410 AUDIT I–PRACTICE MATERIAL: AUDIT PLANNING
TEACHER: [Link]. PEDRO BEJARANO VELÁSQUEZ
AUDIT PROGRAM
INVENTORIES
To validate the information according to the inventory control procedure, we will set the
next audit program developing the points we explained to
continuation:
1. Conduct compliance tests and determine the extent and timeliness of the
audit procedures applicable according to the circumstances.
2. Prepare a report with the results of the work, the conclusions reached and the
comments about the strengths and/or weaknesses of internal control, which require
take immediate action or they can be a point for our letter of
recommendations.
3. Propose to carry out substantive tests of the figures shown in the statements.
financial and necessary according to the circumstances.
Description
Inventories represent goods intended for sale in the normal course of business.
business. This value includes all expenses and direct and indirect charges
necessary to put them in a condition for use or sale.
PROGRAM OBJECTIVES:
1. Verify the inventory in stock, if it is recorded, exists, and is owned by the company.
2. Confirm that the inventories are recorded and the cost is managed according to the methods
accepted and authorized in the policies of the accounting system.
3. Check if purchases are recorded properly
4. Verify that accounting policies regarding inventory levels are being followed.
and its obsolescence
COMPLIANCE TESTS
Rel. Ref. Fact
Detail Observ.
Obj. P/T for
1. Determine the efficiency of the policy
for inventory management.
2. Verify the existence and application
of a policy for the management of
inventories.
3. Confirm that the conditions of
storage of the inventories to be
the optimal ones.
4.……………..
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AUD 410 AUDIT I–PRACTICE MATERIAL: AUDIT PLANNING
TEACHER: [Link]. PEDRO BEJARANO VELÁSQUEZ
SUBSTANTIVE TESTS
Rel. Ref. Fact
Detail Observed.
Obj. P/T for
Check if the items are in inventory
are consolidated to cost or
market, to the lowest one, of
agreement with the principles of
accounting generally
accepted.
The inventory stocks are
collected, calculated, assessed
uniformly, supported y
reflected correctly in the
records assistants Totality,
Existence, Accuracy, and Presentation.
3. Check that the inventories at closing
of the period have been determined, in
as for quantities, prices,
calculations, and existence, on a basis
that maintains uniformity with the
used in the inventories at the closing of
previous period.
4. Verify that the listings of the
inventories they are collected,
calculated, summed, and summarized
correctly, and if the totals are
reflect duly in the
company accounting.
5. Carry out a verification of the
existence of the contributions for the
purchase of materials and others
constitutive elements of the inventory.
6. Make a verification of the figures of
the auxiliaries with the balances of the ledger
to determine existence.
7. The constitution of the Provision for
inventory protection covers the
contingencies of losses what
may originate from decreases
monetary y physics Accuracy,
Valuation and Presentation.
8.………………..
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AUD 410 AUDITING I - PRACTICE MATERIAL: AUDIT PLANNING
TEACHER: [Link]. PEDRO BEJARANO VELÁSQUEZ
________________________________________________________________________________________
Evaluation criteria
1. Inventories must be identified and classified according to their nature in the
accounting records.
2. Finished products must include the goods produced or acquired to
any title, with the purpose of being marketed and for the provision of
services in the development of the entity's own activity.
3. Inventories must be recorded at historical cost or acquisition price,
composed of the expenditures and direct and indirect charges necessary for
to place them in conditions for use or sale.
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