Assertion and Related Inventory Transactions Flashcards Preview

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Flashcards in Assertion and Related Inventory Transactions Deck (17)
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1

Occurrence - Inventory transferred to inventory department using an approved, pre-numbered receiving report

Review and test procedures for the transfer of inventory

2

Occurrence - Inventory transferred to manufacturing using renumbered materials requisitions

Review and test procedures for issuing materials to manufacturing departments

3

Occurrence - accounting for numerical sequence of materials requisitions

Review and test client procedures for account for numerical sequence of materials requisitions

4

Occurrence - Physical safeguards over inventory

Observe the physical safeguards over inventory

5

Completeness - Accounting for numerical sequence of purchase orders, receiving reports, and vouchers

Review client's procedures for accounting for numerical sequence of purchase orders, receiving reports, and vouchers

6

Completeness - Receiving reports matched to vendor invoice and entered in the purchases journal

Trace a sample of receiving reports to their respective vendor invoices and vouchers. Trace a sample of vouchers to the purchases journal.

7

Completeness - Procedures to include goods out on consignment and exclude goods held on consignment

Review and test client's procedures for consignment goods

8

Authorization - Preparation and review of authorized purchase or production schedules

Review authorized production schedules

9

Authorization - Use of material requirements planning and/or just-in-time inventory systems. Review of inventory levels by design department.

Review and test procedures for developing inventory levels and procedures used to control them

10

Accuracy - Periodic or annual comparison of goods on hand with amounts shown in perpetual inventory records

Review and test procedures for taking physical inventory

11

Accuracy - Standard costs that are reviewed by management

Review and test procedures used to develop standard costs

12

Accuracy - Review of cost accumulation and variance reports

Review and test cost accumulation and variance reports

13

Accuracy - Inventory management personnel review inventory for obsolete, slow-moving, or excess quantities

Review and test procedures for identifying obsolete, slow-moving, or excess quantities

14

Accuracy - Perpetual inventory records reconciled to general ledger control account monthly

Review the reconciliation of perpetual inventory to general ledger control account.

15

Cutoff - All receiving reports processed daily by the IT department to record the receipt of inventory

Review and test procedures for processing inventory included on receiving reports into the perpetual records

16

Cutoff - All shipping documents processed daily to record the shipment of finished goods

Review and test procedures for removing inventory from perpetual records based on shipment of goods

17

Classification - Materials requisitions and production data forms used to process goods through manufacturing

Review the procedures and forms used to classify inventory