Search results
Results From The WOW.Com Content Network
For example, if inventory exists in location A, B, and C and someone physically moves C to D without transaction, the inventory control system will continue to show inventory in A, B, and C. At the time of cycle count, the control system will direct the counter to A, B, and C where they will find C missing. Unless inventory in D, which could be ...
While they are often used interchangeably, stock and inventory are two different things. Stock is the products sold by a business. Inventory includes all items required to make, store or sell your stock. [1] Stock-taking may be performed as an intensive annual, end of fiscal year, procedure or may be done continuously by means of a cycle count. [2]
The Auditor's Consideration of the Internal Audit Function in an Audit of Financial Statements full-text: April 1991 66: Communication of Matters About Interim Financial Information Filed or to Be Filed with Special Regulatory Agencies-An Amendment to SAS No. 36: Review of Interim Financial Information full-text: June 1991 67
The primary criticism of the standard is that many procedures are suggested rather than required. For example, it is suggested that auditors consider surprise procedures like showing up unannounced for an inventory count. In actual practice auditors often tell clients which inventory locations they are going to 'observe.'
For instance, observation of payment of wages and salaries, physical count of inventory or opening of mail. This helps the auditor to have an assurance whether official procedures are followed 3. Inquiry Inquiry consists of seeking information of knowledgeable person inside or outside the entity. It may range from formal written inquiry to oral ...
For example, an auditor may: physically examine inventory as evidence that inventory shown in the accounting records actually exists (existence assertion); inspect supporting documents like invoices to confirm that sales did occur (occurrence); arrange for suppliers to confirm in writing the details of the amount owing at balance date as evidence that accounts payable is a liability (rights ...
Get AOL Mail for FREE! Manage your email like never before with travel, photo & document views. Personalize your inbox with themes & tabs. You've Got Mail!
An audit report may have an executive summary – a body that includes the specific issues or findings identified and related recommendations or action plans, and appendix information such as detailed graphs and charts or process information. Each audit finding within the body of the report may contain five elements, sometimes called the "5 C's":