审计学（英文）_20 AUDIT OF THE INVENTORY AND

AUDIT OF THE 20 INVENTORY AND WAREHOUSING CYCLE DONT IGNORE RED FLAGS Arens, Loebbecke, Auditing, &E @2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 by Prentice Hall, Inc. 20 DON’T IGNORE RED FLAGS

Inventory is generally a major item on the balance sheet, and it is often the largest item making up the accounts included in working capital. Arens, Loebbecke, Auditing, &E @2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 by Prentice Hall, Inc. Inventory is generally a major item on the balance sheet, and it is often the largest item making up the accounts included in working capital

The inventory is in different locations, which makes physical control and counting difficult. ■■■ ■■■■ ■■■■ ■■■■■ ■■■ ■■■ ■■■■ ■■■ ■■ ■■■■ ■■■ ■■■ ■■■ ■ ■■ ■■ ■■ ■■■■■■■■■■■ ■■■国■■■■■■■■ Arens, Loebbecke, Auditing, &E @2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 by Prentice Hall, Inc. The inventory is in different locations, which makes physical control and counting difficult

BUSINESS FUNCTIONS IN THE CYCLE AND RELATED DOCUMENTS AND RECORDS Process purchase Orders Receive raw materials Store raw materials Process the goods Ship finished goods Perpetual Inventory Master Files Arens, Loebbecke, Auditing, &E @2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 by Prentice Hall, Inc. BUSINESS FUNCTIONS IN THE CYCLE AND RELATED DOCUMENTS AND RECORDS  Process Purchase Orders  Receive Raw Materials  Store Raw Materials  Process the Goods  Ship finished Goods  Perpetual Inventory Master Files

PARTS OF THE AUDIT OF INVENTORY raster Acquire and Ship goods Assets Record raw and MaterialS, Ind Record Costs Labor and Revenue Overhead and Costs Physically Price and Observe Compile Inventory Inventory Arens, Loebbecke, Auditing, &E @2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 by Prentice Hall, Inc. PARTS OF THE AUDIT OF INVENTORY Acquire and Record Raw Materials, Labor, and Overhead Transfer Assets and Costs Ship Goods and Record Revenue and Costs Physically Observe Inventory Price and Compile Inventory

Audit of Cost Accounting Cost Accounting Controls Tests of cost Accounting · Physical controls Documents and records for Transferring Inventory Perpetual Inventory Master Files Unit cost records Arens, Loebbecke, Auditing, &E @2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 by Prentice Hall, Inc. Audit of Cost Accounting • Cost Accounting Controls • Tests of cost Accounting • Physical controls • Documents and Records for Transferring Inventory • Perpetual Inventory Master Files • Unit cost Records

ANALYTICAL PROCEDURES After pertorming the appropriate tests of the cost accounting records and analytical procedures, the auditor is prepared to design and perform tests of details of the ending inventory balance. Analytical procedures are as important in auditing and warehousing as in any other cycle Arens, Loebbecke, Auditing, &E @2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 by Prentice Hall, Inc. ANALYTICAL PROCEDURES After performing the appropriate tests of the cost accounting records and analytical procedures, the auditor is prepared to design and perform tests of details of the ending inventory balance. Analytical procedures are as important in auditing and warehousing as in any other cycle

Physical observation of Inventory it is ordinarily necessary for the independent auditor to be present at the time of count and, by suitable observation, tests, and inquiries, satisfy himself respecting the effectiveness of the methods of inventory- taking and the measure of reliance which may be placed upon the clients representations about the quantities and physical condition of the inventories Arens, Loebbecke, Auditing, &E @2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 by Prentice Hall, Inc. … it is ordinarily necessary for the independent auditor to be present at the time of count and, by suitable observation, tests, and inquiries, satisfy himself respecting the effectiveness of the methods of inventory￾taking and the measure of reliance which may be placed upon the client’s representations about the quantities and physical condition of the inventories Physical Observation of Inventory

Audit of Pricing and compilation Pricing and compilation Controls Procedures Valuation of Inventory 2 Pricing Purchased Inventory b Pricing Manufactured Inventory 团 Cost or market Arens, Loebbecke, Auditing, &E @2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 by Prentice Hall, Inc. Audit of Pricing and Compilation Pricing Purchased Inventory Pricing Manufactured Inventory Cost or Market Pricing and Compilation • Controls • Procedures • Valuation of Inventory

INTEGRATION OF THE TESTS Acquisition and Payment Cycle Payroll and Personnel cycle Sales and collection Cycle Cost Accounting Physical Inventory, Pricing, and compilation Arens, Loebbecke, Auditing, &E @2000 by Prentice Hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 by Prentice Hall, Inc. INTEGRATION OF THE TESTS Acquisition and Payment Cycle Payroll and Personnel Cycle Sales and collection Cycle Cost Accounting Physical Inventory, Pricing, and Compilation