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
Q

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

A

Review and test procedures for the transfer of inventory

2
Q

Occurrence - Inventory transferred to manufacturing using renumbered materials requisitions

A

Review and test procedures for issuing materials to manufacturing departments

3
Q

Occurrence - accounting for numerical sequence of materials requisitions

A

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

4
Q

Occurrence - Physical safeguards over inventory

A

Observe the physical safeguards over inventory

5
Q

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

A

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

6
Q

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

A

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

7
Q

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

A

Review and test client’s procedures for consignment goods

8
Q

Authorization - Preparation and review of authorized purchase or production schedules

A

Review authorized production schedules

9
Q

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

A

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

10
Q

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

A

Review and test procedures for taking physical inventory

11
Q

Accuracy - Standard costs that are reviewed by management

A

Review and test procedures used to develop standard costs

12
Q

Accuracy - Review of cost accumulation and variance reports

A

Review and test cost accumulation and variance reports

13
Q

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

A

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

14
Q

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

A

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

15
Q

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

A

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

16
Q

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

A

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

17
Q

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

A

Review the procedures and forms used to classify inventory