Auditors are required to understand the client’s industry and business but may not be experts in identifying the quantity and value of certain inventory items. For example, consider observing a physical inventory and testing inventory valua- tion for a client that mines rare gems. In such cases, auditors may use a specialist to assist in […]
Following are audit procedures commonly performed in the inventory and warehousing cycle for a manufacturing company: 1. Account for a sequence of raw material requisitions and examine each requisition for an authorized approval. 2. Trace the recorded additions on the finished goods perpetual inventory master file to the records for completed production. 3. Compare the […]
Latner Shoe Distributor Company maintains a large portion of the shoe merchandise in 10 warehouses throughout the eastern United States. This ensures swift delivery service for its chain of stores. You are assigned alone to the Boston warehouse to observe the physical inventory process. You encountered the following situations during the December 31, 2019, physical […]
Auditors are required to understand the client’s industry and business but may not be experts in identifying the quantity and value of certain inventory items. For example, consider observing a physical inventory and testing inventory valuation for a client that mines rare gems. In such cases, auditors may use a specialist to assist in testing […]
Latner Shoe Distributor Company maintains a large portion of the shoe merchandise in 10 warehouses throughout the eastern United States. This ensures swift delivery service for its chain of stores. You are assigned alone to the Boston warehouse to observe the physical inventory process. You encountered the following situations during the December 31, 2019, physical […]
