Audit Field Standards: Audit of Inventory Session 11
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Transcript Audit Field Standards: Audit of Inventory Session 11
Audit Field Standards:
Audit of Inventory
Session 11
Learning Objectives
Understanding Audit Field Standards of Audit of
Inventory
Understanding Internal Control of Inventory
Understanding Audit Objectives of Inventory
Being able to design Audit Procedures of
Inventory
Understanding of Documents (evidence) to
support the records of Inventory
Audit Evidence of Purchasing and Inventory
Confirmation about Inventory
Some Frauds involving Inventory
Examples of Audit Findings of Inventory
SPAP – SA Seksi 331
SA 331 – 03 sd 07 – Pengamatan
thd Penghitungan Fisik Sediaan
SA 331 – 08 – Sediaan yang berada di
Gudang Umum
(Tugas: Mahasiswa membuat resume dan
mempresentasikannya dengan beberapa
kemungkinan penyimpangan yang
mungkin terjadi)
The Internal Control Objectives of
Inventory
Inventory purchased are needed
Inventory is stored safely in good storage/
warehouse (warehouse is physically good)
Inventory is prevented from theft (warehouse
is a closed area for unauthorized persons)
and breaking down
Inventory is stacked manageably and easy
to be taken out.
Inventory is maintained in a sufficient
balance.
Inventory is classified accordingly
Activities Need to be Examined
Requesting of purchase activity
Receiving activity (The way of receive)
Moving out activity
Storing/stacking activity
Packing activity
Audit Procedures of Inventory
are the steps to be done sequentially to
achieve the audit objectives
Audit Objectives of Inventory
Transaction Audit Objectives
Occurrence
Completeness
Accuracy
Cut off
Classification
Balance Audit Objectives
Existence
Completeness
Right and Obligation
Valuation and Allocation
Audit Objectives of Inventory
Disclosure Objectives
Occurrence
Right and Obligation
Completeness
Classification and Understandability
Accuracy and Valuation
(Boynton, Modern Auditing 8 edition)
Documents (evidences) to support
the records of Inventory
PR (Purchase Requisition)
PQ (Purchase for Quotation
Bid Evaluation
Contract or Agreement Letter
PO (Purchase Order)
RR (Receiving Report)
DO (Delivery Order of supplier)
Invoice of supplier
Purchase Return Document
Good Using Document
Audit Evidence of Inventory
Inquiries of the client
Documentation
Confirmation
Observation
Physical examination
Analytical procedures
Reperformance
Confirmation about Inventory
Some Frauds in Inventory
Over or under stating the value of
Inventory
Misclassifying Inventory
Scrapping good inventory
Stealing inventory
Examples of Audit Findings of
Inventory
Condition
Criteria
Causes
Effects
Recommendation