Inventory is kept securely (2)

Question 1

What is risk (movements)

Answer 1

That inventory movements are not adequately monitored

Question 2

What is control objectives (movements)

Answer 2

Ensure that all inventory movements are authorised and recorded

Question 3

What is controls (movements) (pre-numbered)

Answer 3

Inventory should only be moved if it is accompanied by pre-numbered GDN/GRN

Question 4

What is controls (movements) (reconciliations)

Answer 4

Regular reconciliations performed of inventory records with the general ledger

Question 5

What is controls (movements) (segragation)

Answer 5

Segragation of duties to exist in terns of responsibilities for maintenance of inventory records and custodianship of inventory

Question 6

What is tests of controls (movements) (GDNs are GRNs)

Answer 6

For a sample of inventory movements, inspect GDNs and GRNs to determine whether inventory is being moved for valid reasons

Question 7

What is tests of controls (movements) (Reconciliations)

Answer 7

Review a sample of reconciliations to confirm they have been accurately prepared and reviewed

Question 8

What is tests of controls (movements) (segragation)

Answer 8

Observe recording of inventory and discuss inventory with relevant staff to ensure proper segragation of duties is operating