11 - Production Cycle Flashcards
what is a manufacturer concerned with?
- the production process
- the movement of inventory
if the entity fails to control the production process?
there may be incorrect pricing and stock counts; resulting in lost sales, wastage and obsolete stock
what are the five types of inv and production entities?
- retailer
- wholesaler
- resources
- mining
- manufacturer
how are transactions triggered in the inventory cycle for a manufacturing entity?
1) production order form, RM requisition form
2) production schedule
3) RM transfer note, FG transfer note
4) production / shift reports
controls for receiving and storing RM?
purchase mgr authorizes the purchase of RM by signing a requisition form
controls for determining production needs?
production mgr should authorize production schedule for each month and sign as evidence of control taking place
controls for determining RM needs?
production mgr should authorize the RM required for each period
controls for requesting goods from RM warehouse?
should only be made by warehouse manager
controls for transferring RM to factory?
warehouse mgr should authorize transfer by using a unique username and passcode
controls for transfer to FG warehouse?
authorized and signed off by warehouse mgr
controls for updating inv records?
staff, other than the inv mgr, should have read-only access to inv updating page on inv system
controls for storing FG?
inventory to be locked in a biometric locked room
controls for costing inv items?
costing of inventory per the inventory item list should be authorized by inventory mgr
controls for maintaining inv records?
production floor mgr should perform a stock count at end of each month
integrity of info flow for inv/prod cycle?
VAC
