Accounting: Control Aspects | Liberty University

University:
Liberty University
Course:
ACCT 332 | Accounting Information Systems
Academic year:

2024
Views:

328

Pages:

1
Author:

Patel R.

‭ ontrol aspects‬ C ‭To the extent that an inventory is made for audit purposes, it must be carried‬ ‭out by‬‭(or in‬ ‭the presence of)‬‭s omeone who is socially and functionally‬‭independent of the‬ ‭c ustodian to be monitored‬‭. The latter must be present‬‭during the inventory so that he‬ ‭can identify any differences and not subsequently blame them on the inspector. It is also‬ ‭important that he can, if necessary, use his own documents to demonstrate any‬ ‭inaccuracies in the administration on the basis of which the audit is carried out. It is‬ ‭generally a desirable one recording‬ ‭protocol to‬‭be made, including date, serial number,‬ ‭warehouse, executive officers, items, stock according to the stock administration of the‬ ‭warehouse service (if applicable), the same according to the office stock administration,‬ ‭stock found to be present, shortage (quantity, price, amount) and excess (quantity, price ,‬ ‭amount). The document must be signed by the official responsible for the inspection and‬ ‭by the warehouse manager who attends the inspection or has someone present. (If the‬ ‭warehouse manager does not want or cannot immediately confront differences with‬ ‭respect to the office stock administration, but these must first be sorted out by another‬ ‭officer, according to the administration, this stock will not be included in the protocol‬ ‭itself, but must be included in a separate document. are recorded). Special attention‬ ‭should also be paid to an audit aimed at establishing in‬ ‭accordance with the book‬ ‭balance at the time of inventory, the so-called cut off.‬‭In particular, it will be‬ ‭necessary to check whether all items received shortly before the inventory were already‬ ‭accounted for as received at that time and whether the deposits booked shortly before‬ ‭the inventory had already been sent before that time.‬ ‭ imes of inventory‬ T ‭Apart from the foregoing, inventory can take place at very different times.‬ -‭ ‬ ‭-‬ ‭-‬ ‭-‬ ‭ eriodic;‬ P ‭Continue regularly;‬ ‭ ontinuously irregular‬ C ‭O ccasionally.‬ I‭ncidental inventory‬ ‭An incidental inventory takes place when fire damage must be determined, damage‬ ‭due to theft must be determined, etc. The objectives of the inventories indicated‬ ‭under d require no further explanation. The objective of the first three inventories‬ ‭indicated is in particular to determine the correspondence between the actual‬ ‭stocks available and the stocks according to the stock registration.‬‭The reliability of‬ ‭this registration is essential‬‭; In business, the regulation‬‭of the flow of goods is‬ ‭largely based on the information provided by stock registration. The objective of the‬ ‭inventory referred to and at the balance sheet date is not only to determine that the‬ ‭goods are present in the required quantities, but also to assess their quality and‬ ‭age.‬‭This assessment of quality is reflected in the‬‭valuation of inventories on the‬ ‭balance sheet.‬