Lecture notes, cheat sheets
Контроль и ревизия. Ревизия материальных запасов. Оценка системы внутреннего контроля (самое важное) Directory / Lecture notes, cheat sheets Table of contents (expand) 60. REVISION OF INVENTORIES. ASSESSMENT OF THE INTERNAL CONTROL SYSTEM 1. Discuss with representatives of the audited organization how they assess the risks associated with inventory accounting: whether stock standards have been established; ▪ is there a procurement budget; ▪ is there a document establishing the procedure for collecting information about stale reserves, and the procedure for making decisions regarding such reserves; ▪ whether and how procurement prices are controlled, which prevents managers from receiving unofficial “bonuses” from suppliers; - how confident is management that the conditions for storing inventories ensure the preservation of their quality and that all deterioration that has occurred for various reasons has been assessed and reflected in the financial statements; ▪ how confident is management that there are no unaccounted-for inventories in the warehouses, including spare parts from written-off fixed assets, officially written-off but not yet destroyed inventories, etc. 2. Ask to provide documents confirming the implementation of control measures to reduce the above risks, for example, the results of an analysis of the presence of unclaimed inventory and the reasons for unclaimed inventory. Try to establish how the identification of such stocks is regulated, whether the real reasons for overstocking are being clarified, and what measures are being taken. 3. Ask to provide documents confirming management’s analysis of the main trends in the movement of materials: an increase or decrease in inventories, the degree of supply with inventories, the dynamics of claims regarding the quality of raw materials and/or products made from them, the cost of written-off inventories, etc. 4. Repeat (if possible) one or two control procedures, for example in relation to identifying stale stocks. 5. Make a preliminary conclusion about the state of internal control in this area. Illustration. It is better to organize the procedure for re-checking internal control over inventory status as follows. Ask to bring the internal regulations for the identification of unclaimed (stale) reserves. Interview separately at least three persons from those who, according to the regulations, should deal with this issue (and in the absence of regulations, warehouse managers): 1) whether there are stocks in their warehouse that have not been moving during the last month; 2) is there any module in the software that allows you to display a list of stocks that are not moving during any period (day, month, quarter, year); 3) whether such reserves can be considered stale. In many cases, the auditor will be convinced that he has "digged" an immense problem related to the interpretation of insurance, seasonal, normal stocks, the psychology of the business executive of the "Soviet economy", etc. The task is to determine at what stage the organization is in solving this problem. Based on the answers of the respondents, select two or three types of stocks that are not moving for a long time (for example, two types of raw materials and one type of finished product). Check with the respondents for their version of the reason for the lack of demand. << Back: Audit of fixed assets. Efficiency control >> Forward: Revision of inventories. Monitoring compliance with the law. Control of financial reporting We recommend interesting articles Section Lecture notes, cheat sheets: ▪ Criminal law. Special part. Crib See other articles Section Lecture notes, cheat sheets. Read and write useful comments on this article. Latest news of science and technology, new electronics: The existence of an entropy rule for quantum entanglement has been proven
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