如何成为合格的审计咨询师16

1、Audit of the Inventoryand Warehousing CycleChapter 16Learning Objective 1Identify the business functionsand the related documentsand records in the inventoryand warehousing cycle.Functions in the Inventoryand Warehousing CycleProcesspurchaseordersStorerawmaterialsProcess the goodsReceive rawmaterial

2、sFunctions in the Inventoryand Warehousing CycleStorefinishedgoodsShipfinishedgoodsLearning Objective 2Describe how e-commerceaffects inventory management.How E-Commerce Affects Inventory ManagementThe Internet enables clients to provide expandeddescriptions of their inventory on a real-time basis.T

3、he use of the Internet and other e-commerceapplications may lead to financial reportingrisks if access to inventory databases andsystems is not adequately controlled.Learning Objective 3Explain the five parts ofthe audit of the inventoryand warehouse cycle.Audit of InventoryInternally transferassets

4、 and costs.Acquire and recordraw materials, labor,and overhead.Part of auditCycle in which testedAcquisition andpayment pluspayroll and personnelInventory andwarehousingAudit of InventoryPhysically observeinventory.Price and compileinventory.Cycle in which testedShip goods and recordrevenue and cost

5、s.Part of auditSales andcollectionInventory andwarehousingInventory andwarehousingLearning Objective 4Design and perform audittests of cost accounting.Cost Accounting Controls2. Controls over the related costs1. Physical ControlsRaw materialsWIPFinished goodsoverTests of Cost AccountingPhysical Cont

6、rolsDocuments and records fortransferring inventoryPerpetual inventory master filesUnit cost recordsLearning Objective 5Apply analytical procedures tothe accounts in the inventoryand warehousing cycle.Analytical Procedures for Manufacturing EquipmentAnalytical ProcedurePossible MisstatementCompare g

7、ross marginOverstatement orpercentage with that ofunderstatement ofprevious years.inventory and costof goods soldCompare inventory turnoverObsolete inventory(cost of goods sold dividedOverstatement or by average inventory) withunderstatement ofthat of previous years.inventoryAnalytical Procedures fo

8、r Manufacturing EquipmentAnalytical ProcedurePossible MisstatementCompare unit costs ofOverstatement orinventory with those ofunderstatement ofprevious years.unit costsCompare extendedMisstatements ininventory value with thatcompilation, unitof previous years.costs, or extensionsAnalytical Procedure

9、s for Manufacturing EquipmentAnalytical ProcedurePossible MisstatementCompare current yearMisstatement of unitmanufacturing costs withcosts of inventory,those of previous yearsespecially direct(variable costs should belabor andadjusted for changes inmanufacturingvolume).overheadMethodology for Desig

10、ningTests of Details of Balances Identify client business risks affectingthe inventory and warehousing cycles.Set tolerable misstatement andassess inherent risk for theinventory and warehousing cycles.Assess control risk for several cycles.Methodology for DesigningTests of Details of BalancesDesign

11、and perform tests ofcontrols and substantive testsof transactions for theseveral cycles.Design and perform analyticalprocedures for the inventoryand warehousing cycle.Methodology for DesigningTests of Details of BalancesDesign tests of detailsof inventory to satisfybalance-relatedaudit objectives.Au

12、dit proceduresSample sizeItems to selectTimingLearning Objective 6Design and performphysical observationaudit tests for inventory.ControlsProper instructions for the physical countSupervision by responsible personnelIndependent interval verification of the countsIndependent reconciliations of the ph

13、ysicalcounts with perpetual inventory master filesAdequate control over count sheets or tagsSelection of itemsSample sizeTimingAudit DecisionsPhysical Observation TestsThe most important part of the observationof inventory is determining whether thephysical count is being taken in accordancewith the

14、 clients instructions.Balance-Related Objectives: Physical Inventory ObservationExistenceCompletenessAccuracyInventory as recorded on tags exist.Existing inventory iscounted and tagged.Inventory is countedaccurately.ClassificationCutoffInventory is classified correctly on the tags.Transactions are r

15、ecorded in the proper period.Balance-Related Objectives: Physical Inventory ObservationBalance-Related Objectives: Physical Inventory ObservationRights The client has rightsto inventory recorded on tagsRealizable ValueObsolete and unusableinventory items areexcluded or noted.Learning Objective 7Desi

16、gn and perform audittests of pricing andcompilation for inventory.Audit of Pricing and CompilationInventory compilation testsInventory price testsValuationof inventoryPricing andcompilationproceduresPricing andcompilationcontrolsAudit of Pricing and CompilationBalance-Related Objectives:Inventory Pr

17、icing and CompilationDetailtie-inExistenceCompletenessAccuracyBalance-Related Objectives:Inventory Pricing and CompilationClassificationRealizable valueRightsPresentationand disclosureValuation (Pricing) of InventoryPricing Purchased InventoryPricing Manufactured InventoryCost or MarketLearning Obje

18、ctive 8Integrate the various parts ofthe audit of the inventoryand warehousing cycle.Interrelationship ofVarious Audit TestsTests of acquisitionand payment cycleRaw materialsAcquisitions ofraw materialsWork in processOther manufacturingoverheadInterrelationship ofVarious Audit TestsTests of payrolland personnel cycleWork in processDirect laborWork in processIndirect laborInterrelationship ofVarious Audit TestsInventory testsRaw materialsEnding inventoryWork in processEnding inventoryFinished goodsEnding invent