Only goods required by the entity are accepted and accurately recorded

Question 1

What is risk (goods)

Answer 1

That goods which have not been ordered and accepted

Question 2

What is control objectives (goods)

Answer 2

Ensure that only goods which have been ordered are accepted

Question 3

What is controls (goods) (warehouse)

Answer 3

A copy of the authorised order form should be passed to the warehouse

Question 4

What is controls (goods) (received)

Answer 4

When goods are received, they should be matched to order form and only accepted if they were ordered

Question 5

What is controls (goods) (GRN)

Answer 5

GRN should be signed to evidence that it has been vouched back to the order form

Question 6

What is tests of controls (inspect)

Answer 6

Inspect a sample of GRNs for evidence of a signature verifying that the goods received were traced back to an authorised order form

Question 7

What is risk (inventory)

Answer 7

That porchases and sales of inventory are recorded in the wrong accounting period

Question 8

What is control objectives (inventory)

Answer 8

Ensure that all purchases and sales of inventory are recorded in the correct accounting period

Question 9

What is controls (inventory)

Answer 9

All GDNs and GRNs are processed on a daily basis to record the despatch and receipt of inventory

Question 10

What is tests of controls (inventory)

Answer 10

Inspect documentation to confirm that daily processing of GDNs and GRNs occur