Audit of Inventories: A Joint StudyFrom the back cover: Inventories constitute one of the most complex areas in auditing and in business management generally. Yet until now, little has been issued in either Canada or the United States in the way of guidance on auditing this significant asset. "Audit of Inventories", prepared by a joint study group of the Canadian Institute of Chartered Accountants and the American Institute of Certified Public Accountants, tackles this important issue. It discusses the problems auditors might encounter, and suggests auditing procedures they should use to satisfy themselves about clients' representations concerning the physical existence, completeness, ownership, valuation, financial statement presentation and disclosure of inventories. |
Contents
Auditors Objective and Initial Planning Considerations | 1 |
Existence Ownership and Completeness | 11 |
Existence Ownership and CompletenessCount | 25 |
Copyright | |
8 other sections not shown
Common terms and phrases
accepted accounting principles actual and standard actual cost additional Agreeing actual alternative procedures analytical review procedures appropriate assertions assess audit risk auditor should consider auditor's objective clerical accuracy client's inventory consignment stock cost of sales cost records costing system count attendance count date count sheets cutoff procedures cutoff testing determine evaluate example exist final inventory listing final listing financial statement assertions financial statements gross profit identified included internal control inven inventory count inventory items labor LIFO method net realizable value obsolescence obsolete obtain assurance obtain satisfaction overhead performed perpetual inventory records perpetual records physical count physical inventory potential prenumbered prior year's properly purchases quantities on hand raw materials realizable value receiving reports roll-forward sales invoices sample shipments significant items slow-moving specialist standard cost subsequent Substantive Procedures Suggested Audit Procedures supplier tags test basis test counts tory transactions variance analysis write-downs year-end date year-end inventory