k 1 instructions for inventory count attendance

8/13/2019 k 1 Instructions for Inventory Count Attendance

1/13

John Kay & Co FSA/SE/VSE

INSTRUCTIONS FOR INVENTORY

COUNT ATTENDANCE

Client Period-end W/P reference

ALL-IN-ALL GHANA LTD. 12/31/2008 k/3

Purpose

The purpose of this working pper is to pro!i"e su##r$ of pro%e"ures to ""ress when p&nning for

n" tten"ing n in!entor$ %ount n" perfor#ing su'se(uent fo&&ow)up pro%e"ures.

It in%&u"es &ist of pro%e"ures to %onsi"er n" pro!i"es #ens of "o%u#enting these #tters* in%&u"ing

%ross-referen%ing to ""ition& "o%u#enttion where ne%essr$. These %onsi"ertions re e(u&&$ re&e!nt

when the entit$ #intins perpetu& in!entor$ re%or"s n" un"ertkes regu&r %$%&e test %ounts throughout

the perio" or perfor#s n entire ph$si%& %ount of in!entories he&" t "te %&ose to the perio"-en".

It is not %o#p&ete &ist of %onsi"ertions n" #$ re(uire ti&oring to #eet the prti%u&r %ir%u#stn%es of

e%h %&ient.

Applicability

Note tht our tten"n%e t the in!entor$ %ount is re'utt'&e pro%e"ure when in!entor$ is signifi%nt

%%ount. +se of this working pper is option&. ,e either %o#p&ete this working pper or use it in

"e!e&oping %usto#ie" u"it progr# for the o'ser!tion of the ph$si%& %ount of in!entories.

Contents

e%tion A Logisti%s n" %on%&usion

e%tion In!entor$ %ount %onsi"ertions n" pro%e"ures

'efore the %ount

"uring the %ount

'efore &e!ing the entit$s pre#ises fter the %ount* n"

su'se(uent to the %ount.

repre" '$

L / 4T

Dte 5""/##/$$6

31 / 12 / 2008

7e!iewe" '$

4

Dte 5""/##/$$6

03/ 01/ 2009

7e!iewe" '$1

N/A

Dte 5""/##/$$6

N/A

e%tion:s; re!iewe"2

N/A

1.If n ""ition& re!iew is perfor#e" &though this #$ not 'e re(uire".2If the ""ition& re!iewer hs not re!iewe" the entire "o%u#ent* the re!iewer in"i%tes here wht

se%tions he or she hs re!iewe".

1


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COUNT ATTENDANCE

A. Logistics

Dte of %ount30 / 12 / 2008 < 31 / 12 / 2008

Lo%tion of in!entor$ALL-IN-ALL D=>T ) TA7,A

Durtion of the !isit2 DA?

Nture of in!entories A+T>@>IL= T?7=* T+= AND

A=>7I=

@etho" of #esuring (untit$>+NTING

ApproBi#te !&ue of in!entor$ :rw #teri&s*

work-in-progress n" finishe" goo"s;

N#e of %&ient stff #e#'er in %hrge of the

in!entor$ %ount =@@AN+=L >A?= < =@@AN+=LAIN?A@

N#e:s; of 4>HN A? < > in"i!i"u&s

tten"ing LILIAN IH=7 < 4>HN TA?

Conclusion

,s the in!entor$ %ount proper&$ %rrie" out n" were %ount "eti&s %%urte&$ %pture"C

o##ent on n$ "efi%ien%ies in the in!entor$ %ount pro%e"ures.

2


3/13



COUNT ATTENDANCE

A&though there ws no %o"ifie" sto%k tke instru%tion for the %&ient stff to fo&&ow "uring the %ount* the

stff in %hrge of the %ount were reson'&e eBperien%e" n" knows e!er$ in!entor$ '$ n#e n"

&o%tion. urther* the in!entor$ were proper&$ rrnge" within the store n" thus esi&$ i"entifi'&e forthe purpose of the %ount. =nough sp%es h!e &so 'een &eft 'etween esh in!entor$ to &&ow for %&ose

%ount. or these resons* we %on%&u"e tht the %ount ws proper&$ "one* n" there were no signfi%nt

"efi%ien%ies in the in!entor$ %ount pro%e"ures we reson'&$ eBpe%te" to pp&$.

3


4/13



COUNT ATTENDANCE

B. Inventory count considerations and procedures


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COUNT ATTENDANCE

Procedures Done by and

date

WP ref.

Before the inventory count planning

1. =!&ute the "e(u%$ of the entit$s in!entor$ %ount

instru%tions* if pp&i%'&e. onsi"er the fo&&owing (uestions

Do the$ %o!er && phses of the in!entor$ %ountC

H!e the$ 'een issue" in ti#e&$ #nnerC

Do the$ spe%if$ the %o!erge of the in!entor$ %ountC

H!e the$ 'een "is%usse" with the person responsi'&e for

the in!entor$ %ount to %he%k tht the pro%e"ures re

un"erstoo" n" tht potenti& "iffi%u&ties re nti%ipte"C

If the instru%tions were in"e(ute* "i" we seek

i#pro!e#ents to the#C

If no instru%tions h!e 'een issue"* in(uire of #nge#ent

n" other %&ient personne&* s pproprite* to gin n

un"erstn"ing of the in!entor$ %ount pro%e"ures. 7eso&!e n$

%on%erns we #$ h!e on the "e(u%$ of the entit$s

pro%e"ures prior to the in!entor$ %ount.

4T / L

31/12/08

k/1/1

u&&et 1.1.

2. 7efer to n&$ti%& pro%e"ures perfor#e"* n" "is%uss with

#nge#ent n$ signifi%nt %hnges in in!entories o!er theperio"* the "egree of f&u%tution in in!entor$ &e!e&s n" n$

pro'&e#s with in!entories tht h!e o%%urre" "uring the

perio" :e.g.* uneBpe%te" shortges of in!entor$ reporte" n"

negti!e in!entor$ '&n%es;. In(uire 'out the !o&u#e of

in!entor$ he&" t !rious &o%tions n" n$ high !&ue ite#s.

4T / L

31/12/08

k/1/1

u&&et 1.2

3. onsi"er the ti#ing of in!entor$ %ounts re&ti!e to the perio"-

en" "te* n" the re&i'i&it$ of re%or"s use" in n$ Ero&&-

forwr"E or Fro&&-'%k of '&n%es.

4T / L

31/12/08

/1/1

u&&et 1.3

. 7e!iew our working ppers re&ting to the in!entor$ %ount for

the pre!ious perio" to i"entif$ res re(uiring spe%i&

ttention "uring the in!entor$ %ount.

If the u"it ws perfor#e" '$ nother fir# in the pre!ious

perio"* in(uire 'out n$ issues re&ting to the in!entor$

%ount tht #$ h!e 'een i"entifie" '$ the# n" if &o%&

pr%ti%e &&ows eB#intion of the re&e!nt prior perio"

working ppers.

4T / L

31/12/08

k/1/1

u&&et 1.

. 7e!iew the s$ste#s of intern& %ontro& n" %%ounting

re&ting to in!entories in or"er to i"entif$ potenti& res of

"iffi%u&t$.

=!&ute the re&i'i&it$ of %%ounting n" in!entor$ re%or"ing


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COUNT ATTENDANCE


date

WP ref.

s$ste#s in%&u"ing the s$ste#s tht tr%k &o%tion* (untities

n" stges of %o#p&etion in re&tion to work in progress.

4T / L

31/12/08

k/1/1

u&&et 1.

. #i&irie $ourse&f with the nture of the in!entor$ he&" '$

the entit$ %onsi"er

the nee" for pproprite spe%i&ists in or"er to !erif$ the

"es%riptions of the ite#s* whi%h #$ 'e "iffi%u&t to

un"erstn" for the u"itor :e.g.* %he#i%& pro"u%ts or

e&e%troni% "e!i%es;

the #etho" of %%ounting for in!entor$ n" the %on"itionsgi!ing rise to o'so&es%en%e* n"

ph$si%& %ontro&s o!er in!entor$ s prt of intern& %ontro&

in ro%e"ure 'o!e* n" their sus%epti'i&it$ to theft or

"eteriortion.

4T / L

31/12/08

/1/1

u&&et 1.

J. Does the entit$ h!e n$ work in progressC

If $es

%onsi"er the (untit$ n" nture of work in progress n"

whether !&ution eBperts or in!entor$ %ounters wi&& 'e

engge"* n" i"entif$ the %%ounting re%or"s tht wi&& 'e use" '$

#nge#ent to pro"u%e the work in progress figure for

the perio" en" %%ounts n"* where unfinishe" ite#s re

uni(ue&$ i"entifi'&e* p&n to ph$si%&&$ eB#ine ite#s to

o'tin e!i"en%e tht supports the re%or"e" stge of

%o#p&etion.

4T / L

31/12/08

/1/1

u&&et 1.J

8. Does the entit$ use pro%e"ures to esti#te the ph$si%&

(untit$ of in!entor$C

For example, estimating the physical quantity of a coal pile.

4T / L

31/12/08

k/1/1

u&&et 1.8

9. ,i&& intern& u"it 'e in!o&!e" in the in!entor$ %ountC

onsi"er whether n$ re&in%e %n 'e p&%e" on the work

un"ertken '$ intern& u"it.

4T / L

31/12/08

k/1/1

u&&et 1.9

10. onsi"er the use of AATs to en'&e #ore effe%ti!e

se&e%tion of ite#s for in!entor$ %ounts.

Des%ri'e the AATs tht re going to 'e use".

4T / L

31/12/08

k/1/1

u&&et 1.10

11. Do we nee" I7@ ssistn%e for the in!entor$ %ountingC


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COUNT ATTENDANCE


date

WP ref.

o#e entities use %o#puter-ssiste" te%hni(ues to perfor# the

in!entor$ %ounts. In these %ir%u#stn%es there #$ 'e no

pper re%or"s !i&'&e t the ti#e of the %ount. In these %ses

%onsi"er the IT en!iron#ent surroun"ing the in!entor$ %ount

n" %onsi"er the nee" for I7@ ssistn%e.

4T / L

31/12/08

k/1/1

u&&et 1.11

12. Does the entit$ h!e in!entories in "ifferent &o%tionsC

ro!i"e &ist of &o%tions t whi%h tten"n%e is pproprite*

"o%u#enting the resons n" tking into %%ount the

#teri&it$ of the in!entor$ he&" :with referen%e to the profits

of the entit$; n" the ssess#ent of inherent n" %ontro& riskt the "ifferent &o%tions.

4T / L

31/12/08

k/1/1

u&&et 1.12

13. In(uire 'out how in!entor$ #o!e#ents :in n" out of the

entit$s f%i&ities n" in-trnsit ite#s;* if n$* wi&& 'e

%ontro&&e" "uring the %ount n" how %ut-off pro%e"ures wi&&

'e operte".

4T / L

31/12/08

k/1/1

u&&et 1.13

1. Does the entit$ tr"e on F'i&& n" ho&" 'sisC

If $es* re there pro%e"ures to "eter#ine tht F'i&& n" ho&"

in!entor$ wi&& 'e seprte&$ i"entifie" n" %ounte"C

,e #$ in%&u"e in!entor$ he&" on F'i&& n" ho&" 'sis inour %onfir#tion of '&n%es n" ter#s with %usto#ers.

4T / L

31/12/08

k/1/1

u&&et 1.1

1. Are there n$ in!entories he&" '$ thir" prties t 'on"e"

wrehouses for pro%essing or on %onsign#entC

If $es* in(uire of the integrit$ of the thir" prt$.

onsi"er o'tining "ire%t %onfir#tion s to the (untities n"

%on"ition of in!entor$ he&" on 'eh&f of the entit$ in writing

fro# the %usto"in.

onsi"er perfor#ing one or #ore of the fo&&owing

o'tin n un"erstn"ing :in%&u"ing e!&ution of "esign

n" i#p&e#enttion; of the entit$s pro%e"ures for

in!estigting n" e!&uting the thir" prt$

o'tin n in"epen"ent u"itors report on the "e(u%$ of

the thir" prt$s intern& %ontro& for ensuring tht

in!entor$ is %orre%t&$ %ounte" n" "e(ute&$ sfegur"e"

pp&$ &ternti!e u"it pro%e"ures t the thir" prt$s

wrehouse to o'tin u"it e!i"en%e tht infor#tion

re%ei!e" fro# the thir" prt$ is reson'&e

o'ser!e ph$si%& %ounts of the goo"s* if pr%ti%'&e n"reson'&e* n" re%on%i&e tests of su%h %ounts with re%or"s

4T / L

31/12/08

k/1/1

u&&et 1.1

J


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COUNT ATTENDANCE


date

WP ref.

>'tin re%on%i&itions of (untities shown on stte#ents

re%ei!e" fro# the thir" prt$ with the entities re%or"s

if wrehouse re%eipts h!e 'een p&e"ge" s %o&&ter&*

%onfir# with &en"ers pertinent "eti&s of the p&e"ge"

re%eipts

1. If pp&i%'&e* prepre &ist of other 4>HN A? < >

&o%tions n"/or other in"epen"ent u"itors who wi&&

prti%ipte n" "o%u#ent their in!o&!e#ent in se%tion II.=.1

of the &nning Do%u#ent.

4T / L

31/12/08

k/1/1

u&&et 1.1

1J. se" on the u"it ppro%h* "e%i"e the s%ope of the work to

'e perfor#e" n" the eBtent of our test %ounts.

onsi"er n e&e#ent of unpre"i%t'i&it$ when %hoosing sites

to !isit n" ite#s to 'e %ounte". :ee Au"it rogr# for

pe%ifi% Topi%s ) ru"* ro%e"ure 10.;

4T / L

31/12/08

k/1/1

u&&et 1.1J

18. onfir# the &o%tion n" ti#ing of the ph$si%& in!entor$

%ount with the entit$.

4T / L

31/12/08

k/1/1

u&&et 1.1J

19. Design pproprite ro&& forwr" pro%e"ures fro# the "te of

the in!entor$ %ount to the perio"-en". u%h pro%e"ures #$

in%&u"e

!ou%hing pur%hses of in!entor$ "uring the inter!ening

perio" to n" fro# perpetu& re%or"s

!ou%hing s&es of in!entor$ "uring the inter!ening perio"

to n" fro# perpetu& re%or"s

perfor#ing su'stnti!e n&$ti%& pro%e"ures to e!&ute

gross #rgin per%entges* in!entor$ turno!er n"/or "$s

s&es in in!entor$ testing in!entor$ s&es n" pur%hses for proper %ut-off t

the perio"-en"

testing the %%ur%$ of the in!entor$ re%on%i&ition to the

gener& &e"ger t perio"-en"* in%&u"ing tests of re%on%i&ing

ite#s.

n/ n/

8


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COUNT ATTENDANCE


date

WP ref.

During the physical inventory count

1. >'tin n un"erstn"ing of where n" how the in!entor$ is

store" in the wrehouse. If pp&i%'&e* re(uest &$out of the

wrehouse n" rrnge to !isit the "ifferent sites with the

person in %hrge.

4T / L

31/12/08

k/1/1

u&&et 2.1

2. onfir# our initi& un"erstn"ing of the nture n" !o&u#e of

in!entories n" the i"entifi%tion of high !&ue ite#s.

4T / L

31/12/08

k/1/1

u&&et 2.2

3. As%ertin tht in!entories re "e(ute&$ sfegur"e" fro#wether* theft n" other &osses. =!&ute the %ontro&s re&te"

to in!entor$ prote%tion* re%eption* trnsport n" %%ess.

4T / L31/12/08

k/1/1u&&et 2.3

. Deter#ine tht %ontro&s eBist o!er in!entor$ #o!e#ents in

the wrehouses "uring the %ount. onsi"er whether

the p&nt %&ose" for the in!entor$ %ount* n"

there were n$ #o!e#ents fro# one prt of the p&nt to

nother.

Deter#ine whether n$ #o!e#ents :re%eipts or shipping of

in!entor$; re proper&$ %ontro&&e" n" "o%u#ente". >'tin"o%u#entr$ e!i"en%e of the# for their su'se(uent fo&&ow

up.

4T / L

31/12/08

k/1/1

u&&et 2.

. Through in(uir$ n" o'ser!tion "eter#ine whether the

in!entor$ %ount is 'eing perfor#e" in %%or"n%e with the

entit$s instru%tions n" gui"e&ines. In prti%u&r* %onsi"er the

fo&&owing

h!e the in!entor$ %ount te#s un"erstoo" the

instru%tionsC

hs the ph$si%& %ounting 'een proper&$ orgnie"C

re %ount sheets pre-nu#'ere" so tht %o#p&eteness of

the %ount sheets %n 'e %ontro&&e"C

"o the %ounting sheets n" the %ounting %ontro& sti%kers or

tgs* if n$* %ontin the ne%essr$ infor#tionC

re the %ounte" ite#s %&er&$ #rke" to pre!ent "ou'&e

%ounting or o#issionsC

hs the %ounting 'een su'Ke%t to re!iew :"ou'&e %he%king

on %ounting; '$ person other thn the person who

%ounte" in the first p&%eC

re the o'so&ete* "is%ontinue"* o!er-sto%ke" or "#ge"

4T / L

31/12/08

k/1/1

u&&et 2.

9


10/13



COUNT ATTENDANCE


date

WP ref.

ite#s %&er&$ i"entifie"C

Do%u#ent && su%h ite#s i"entifie" so tht these %n 'e

fo&&owe" up when perfor#ing the u"it pro%e"ures regr"ing

the !&ution of in!entories.

hs in!entor$ whi%h 'e&ongs to thir" prties 'een %&er&$

i"entifie"* put si"e n" seprte&$ %ounte"C

Do%u#ent && these ite#s for su'se(uent fo&&ow up.

were && ph$si%& %ounts su'Ke%t to "e(ute super!isionC

hs #er%hn"ise he&" outsi"e in tru%ks or ri&%rs or other%ontiners 'een %%ounte" forC

were && ite#s in%&u"e" in fiBe" ssets eB%&u"e" fro# the

in!entor$ %ountC

"oes the entit$s in!entor$ in%&u"e* p%kging #teri&s*

et%. n" is it the entit$s po&i%$ to %ount the#C If $es*

were the$ ph$si%&&$ %ounte" t perio"-en"C

if the entit$ #intins perpetu& in!entor$ re%or"s*

in(uire if the$ wi&& 'e proper&$ "Kuste" to #t%h the

ph$si%& %ountsC

ee ro%e"ure 8 'e&ow for fo&&ow up pro%e"ures.

"o the peop&e %ounting the in!entor$ n" the peop&e

#onitoring the# h!e the pproprite &e!e& of o'Ke%ti!it$*

know&e"ge n" eBperien%e to 'e '&e to un"ertke the

%ount in "i&igent #nnerC

4T / L

31/12/08

k/1/1

u&&et 2.

. ,hen perfor#ing test-%ounts* we

se&e%t s#p&e of ite#s fro# %ount re%or"s n" tr%e to

ph$si%& in!entories to o'tin e!i"en%e 'out the

eBisten%e n" %%ur%$ of the ite#s %ounte". ,e se&e%t

our s#p&e in %%or"n%e with s#p&ing gui"n%e.Deter#ine tht the %ount re%or"s re pproprite&$ %o#pre"

n" re%on%i&e" with the perpetu& in!entor$ re%or"s. ee

ro%e"ures J n" 8 'e&ow.

se&e%t s#p&e of ite#s n" tr%e ite#s fro# ph$si%&

in!entories to the %ount re%or"s to o'tin e!i"en%e tht

the %ount re%or"s re %o#p&ete n" %%urte. ,e se&e%t

our s#p&e in %%or"n%e with s#p&ing gui"n%e.

gi!e prti%u&r %onsi"ertion to those in!entories whi%h

h!e high !&ue either in"i!i"u&&$ or s %tegor$ of

in!entories* n"

4T / L

31/12/08

k/1/1

u&&et 2.

10


11/13



COUNT ATTENDANCE


date

WP ref.

inspe%t "es%riptions of in!entories* units of #esure n"

(untit$ thereof with "eti&s re%or"e" '$ %ounters n"

open %rtons on test 'sis to "eter#ine tht the "eti&s

of the %ontents re %orre%t n" tht the (untit$ of the

units %ounte" is %%urte&$ stte".

J. o#pre the resu&ts of our testing with the entit$s ph$si%&

%ounting "t or with the perpetu& in!entor$ re%or"s n"

in!estigte the "ifferen%es.

If the #nner of %rr$ing out the in!entor$ %ount or the

resu&ts of the test-%ounts re not stisf%tor$* we i##e"ite&$

"rw the #tter to the ttention of #nge#ent super!ising

the in!entor$ %ount n" infor# the engge#ent #nger or

prtner.

If the issue is signifi%nt* we %onsi"er eBpn"ing the s%ope of

our test %ounts* re(uesting re%ount of prt or && of the

in!entories* or #o"if$ing our u"it ppro%h.

4T / L

31/12/08

k/1/1

u&&et 2.J

8. Through in(uir$ n" o'ser!tion whi&e tten"ing the %ount

"eter#ine n" "o%u#ent if the in!entor$ %ount pro%e"ures

were fo&&owe"* espe%i&&$

how the %ounts re re%or"e"C

how n$ "ifferen%es :'etween the %ount n" the in!entor$

re%or"s; re in!estigte" 'efore the %o#puterie"

in!entor$ re%or"s re up"te" for the %ountsC

how the %o#puterie" in!entor$ re%or"s re up"te"C

4T / L

31/12/08

k/1/1

u&&et 2.8

9. Inspe%t the site to "eter#ine whether && the in!entories h!e

'een %ounte" '$ the entit$.

4T / L

31/12/08

k/1/1

u&&et 2.9

10. o&&ow up n" reso&!e n$ "ifferen%es note" 'etween the

in!entor$ %ount n" the entit$s re%or"s. Do%u#ent ite#s forn$ su'se(uent testing %onsi"ere" ne%essr$* su%h s %opies

of :or eBtr%ts fro#; in!entor$ %ount re%or"s n" "eti&s of

the se(uen%e of those re%or"s.

4T / L

31/12/08

k/1/1

u&&et 2.10

11. ,ere p&nne" "e(ute %ut-off pro%e"ures* :ro%e"ure 13 in

Fefore the in!entor$ %ount p&nning; fo&&owe" n"

#o!e#ents in in!entor$ ref&e%te" in the %%ounting re%or"s in

the %orre%t perio"C

Do%u#ent n" referen%e to working ppers where the %ut)off

pro%e"ures h!e 'een teste".

4T / L

31/12/08

k/1/1

u&&et 2.11

11


12/13



COUNT ATTENDANCE


date

WP ref.

Before leaving the entity!s pre"ises

1. >'tin %op$ of && the in!entor$ %ount sheets for

su'se(uent testing n" fo&&ow-up.

>'tining %op$ of && the in!entor$ %ount sheets is

prefer'&e n" is re(ueste" when p&nning the in!entor$

%ount tten"n%e. Howe!er* if this is not possi'&e* we o'tin

%op$ of eBtr%ts fro# the in!entor$ %ount sheets n" of the

se(uen%e of the in!entor$ %ount sheets* so tht we %n

"eter#ine tht the resu&ts of the %ount h!e 'een proper&$

ref&e%te" in the %%ounting re%or"s of the entit$ n" tht nounuthorie" #en"#ents h!e 'een #"e.

L / 4T

31/12/08

/1/1

u&&et 3.1.

2. >'tin tg %ontro& n" test its %%ur%$ n" %o#p&eteness

prior to &e!ing the entit$s pre#ises. :A&& tgs !oi"e"* use"

n" unuse"* shou&" 'e %%ounte" for.;

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31/12/08

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u&&et 3.2.

3. A""ress && issues note" in the instru%tions fro# the

originting offi%e* if pp&i%'&e.

L / 4T

31/12/08

k/1/1

u&&et 3.3.

. >'tin && re&e!nt "o%u#enttion regr"ing %ut-off :e.g.* &st

few "e&i!er$ notes for ite#s re%ei!e" n" &st few

"ispt%h/shipping "o%u#ents* in%&u"ing those re&ting to

inter-%o#pn$ #o!e#ents;.

L / 4T

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k/1/1

u&&et 3..

12


13/13



COUNT ATTENDANCE


date

WP ref.

#ubse$uent to the inventory count

1. o#pre s#p&e of the (untities of ite#s on %ount sheets*

in%&u"ing ite#s %ounte" '$ us to the fin& in!entor$ &isting*

whi%h is pri%e".

n/ n/

2. >'tin report on the in!entor$ %ount prepre" '$ the

person responsi'&e for the in!entor$ %ount n" "eter#ine tht

&& "ifferen%es 'etween the ph$si%& %ount n" the in!entor$

re%or"s re

ref&e%te" in the %%ounting re%or"s in!estigte" for un"er&$ing resons* n"

"Kuste" perpetu& in!entor$ re%or"s.

n/ n/

3. ,here the in!entor$ %ount is perfor#e" 'efore the perio"-

en"* %onsi"er whether #nge#ent hs institute" pro%e"ures

to "eter#ine tht && in!entor$ #o!e#ents 'etween the

o'ser!e" in!entor$ %ount n" the perio"-en" h!e 'een

pproprite&$ ref&e%te" in the %%ounting re%or"s.

Do%u#ent these pro%e"ures so tht the$ %n 'e su'se(uent&$

teste" 'se" on the ssesse" %ontro& risk n" o!er&& u"itppro%h.

n/ n/

. &er&$ "o%u#ent n$ "ifferen%es 'etween the %ount n" the

entit$s re%or"s n" n$ %ontro& "efi%ien%ies en%ountere"

"uring the in!entor$ %ount to &&ow their su'se(uent fo&&ow

up n" reporting to senior #nge#ent.

n/ n/

5. If the in!entor$ %ount is perfor#e" prior to perio"-en"*

perfor# pproprite ro&& forwr" pro%e"ures fro# the "te of

the in!entor$ %ount to perio"-en".

n/ n/

13

k 1 instructions for inventory count attendance

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