part 7

Question 1

is the inventory recorded in the correct time period (R)

Answer 1

receiving report (cutoff analysis, receiving date > year-end)

Question 2

are payments done for correct invoices

Answer 2

between purchase invoice and payment documentation

Question 3

what are high-value items

Answer 3

purchase order

Question 4

() is the inventory cost higher than the market value

Answer 4

write-down of inventory, allowances for lost value in inventory

Question 5

is the 3-way match performed

Answer 5

purchase order, purchase invoice, receiving report

Question 6

are there omissions or duplicates in documents

Answer 6

PO, RR, PI (duplicates may have fake payments)

Question 7

(what to do) does the physical inventory count reconcile with general ledger

Answer 7

run analysis of information flow from PR to invoice file

Question 8

LECOM (lower of cost of market)

Answer 8

see if cost is bigger than market, because then you have a problem

Question 9

na.rm = T (function R)

Answer 9

ignores the NA/missing values