Audit of inventory items
Posted: Tue Jan 07, 2025 3:29 am
Many businesses, especially manufacturing companies, are characterized by having a large balance of inventory, or, in other words, stock.
The auditor, when working with the company, needs to check and confirm this article. How can this be done? One of the common procedures will be the auditor's participation in the inventory.
According to the law, before preparing annual kazakhstan whatsapp phone number reports, audited entities must conduct an inventory of their assets, including stocks. The auditor's participation in the inventory is one of the procedures during the audit.
How does the auditor participate in inventory:
the auditor can directly observe the inventory;
the auditor may make selective recalculations;
The auditor may request and verify documents related to the inventory.
In some cases, inventory procedures may, due to objective circumstances, be carried out remotely.
Remote inventory procedures are carried out, for example, in the following cases:
when the audited entity has a fragmented and very wide branch network;
when reserves are located in hard-to-reach places, for example, in the Far North;
in other similar cases.
When conducting remote inventory confirmation procedures, the following are used:
photo and video recording;
software products for recording, for example, weight, quantity of stocks, with the transmission of this information electronically.
Regardless of the method of conducting the inventory, as a result of the procedures, the auditor confirms the presence and assessment of stocks, and also draws conclusions about the correctness of the documentation and the actual conduct of the inventory.
In addition, the auditor makes a conclusion about the internal control in relation to inventory at the enterprise.
On the topic: How to conduct an inventory in an organization
The auditor, when working with the company, needs to check and confirm this article. How can this be done? One of the common procedures will be the auditor's participation in the inventory.
According to the law, before preparing annual kazakhstan whatsapp phone number reports, audited entities must conduct an inventory of their assets, including stocks. The auditor's participation in the inventory is one of the procedures during the audit.
How does the auditor participate in inventory:
the auditor can directly observe the inventory;
the auditor may make selective recalculations;
The auditor may request and verify documents related to the inventory.
In some cases, inventory procedures may, due to objective circumstances, be carried out remotely.
Remote inventory procedures are carried out, for example, in the following cases:
when the audited entity has a fragmented and very wide branch network;
when reserves are located in hard-to-reach places, for example, in the Far North;
in other similar cases.
When conducting remote inventory confirmation procedures, the following are used:
photo and video recording;
software products for recording, for example, weight, quantity of stocks, with the transmission of this information electronically.
Regardless of the method of conducting the inventory, as a result of the procedures, the auditor confirms the presence and assessment of stocks, and also draws conclusions about the correctness of the documentation and the actual conduct of the inventory.
In addition, the auditor makes a conclusion about the internal control in relation to inventory at the enterprise.
On the topic: How to conduct an inventory in an organization