Inventory Audit Program Overview
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ScribdTranslationsInventory Audit Program Overview
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ScribdTranslationsAUDIT PROGRAM Elaborated:
INVENTORIES Date:
Reviewed:
Date:
Company: 'LA COMARCA'. S.A.
I. GENERALITIES
Inventories are all intangible assets owned by the entity, available for sale.
For the accounting record of inventories, the company will use the perpetual cost accumulation system, and for the
evaluation of the same uses the weighted average method.
II. OBJECTIVE
Verify the adequacy of internal controls over inventory.
Check their physical existence verification at the same time that they are the property of the company
Check its proper valuation, considering that it does not exceed its value of
realization.
III. PROCEDURES
Date Date Completed Ref. A
No. Description of the procedure
Start Term for Papers
A) General Procedures:
Consult the file of the last audit and extract the aspects that you consider.
1.
important for the current review of the inventories.
Obtain the manuals of policies and procedures for internal control related to
2.
inventory and verify that they are approved by management.
B) Preliminary Study and Evaluation of Internal Control
Apply any methods and preliminary evaluation policies to study and describe the
internal control of inventories.
C) Procedures for Compliance Testing
Verify the existence of controls for the handling of returns, which must be
2. authorized and evaluated in a timely manner.
Verify the receipt of the merchandise that enters the facilities of the entity that
3.
There is a purchase order or the formal request.
Check the warehouse exit documentation, which must be backed up.
6.
with forms such as shipments, dispatches, invoices, etc.
Verify that physical inventory counts are conducted periodically by the staff.
7.
from the audited company.
D) Procedures for Substantive Tests
1. Participate in advance planning of the physical inventory.
Observe the receipt of the merchandise that is on consignment, and verify that the
2.
inventories do not include goods owned by others
Verify the existence of merchandise in the warehouse and in the deposits.
3.
merchandise shipped.