Planning for stock taking, Auditing

Assignment Help:

Planning for Stock taking

Stock taking should be planned well in carried out and advance carefully and systematically through persons fully informed of the duties involved. Those taking part should include persons familiar with the various sections of stock and where practicable supervisors and checkers should be drawn from departments which have no control over the rare custody or movement of stocks. Where particular knowledge is essential to signify the nature or quality of items of stock the client would ensure about personnel properly qualified for this purpose are obtainable at the stock take. Arrangements should be made to ensure a proper cut-off. This means is dispatch documentation should have been originated for all goods dispatched before stock taking and whether still on hand, for all goods whether the property has passed to the customer. The latter should not be involved as stock whenever the count is made.

The process should ensure about the suitable sales invoices are recorded in the correct financial period. Also liabilities have to be set up for all goods included and received in stock and for all goods purchased the property which has been passed to the client. This should be included in the stock even when they are not yet on the company's premises. Arrangements should be made to ensure about goods held in safe custody for another are not recorded as part of the client's stock. Arrangements should be made to confirm and record in the stock sheets details of goods held for the company through outside parties and arrangement should be made to recognize slow moving, or damaged or obsolete stock.

The stock taking instructions should call for the following information also which should be accessible to the auditors while and at the conclusion of the stock take.

  1. Details of stock movement within the count.
  2. The last numbers of goods outward and inward records.
  3. The details of the numbering of stock sheets masteries of those completed and of those unused and cancelled.

Related Discussions:- Planning for stock taking

Trademarks and patent, Trademarks and Patent Trademarks and then writt...

Trademarks and Patent Trademarks and then written off over their useful lives and patents may be capitalized along with any renewal fees being charged to revenue. Whether a tr

Examination of Deeds, Examination of Deeds Make Sure that the mortg...

Examination of Deeds Make Sure that the mortgage is in the name shown in the advance records; That there is a document of title to the property within mortgage and that

Inter-related components of internal control, Part A: What are the five...

Part A: What are the five inter-related components of internal control? Briefly discuss them. Part B: A file maintained by the Accounts Department for one of Sharp's s

Capital allowances vs. depreciation, Capital allowances vs. Depreciation ...

Capital allowances vs. Depreciation Whether the client can prove such they will keep the existing levels of investment in original terms, then there may be justification to ac

Verification, discuss the verification procedure of current assets and long...

discuss the verification procedure of current assets and long term liabilties

Audit evidence, factors that influence auditors judgement on sufficiency of...

factors that influence auditors judgement on sufficiency of audit evidence

Factors affecting and controlling occupational health, Factors Affecting an...

Factors Affecting and Controlling Occupational Health (i) Walking-Working Surface Workers must work or move on different surfaces while working. Such - surfaces are cha

Audit, The auditors for Weston University are conducting their audit for th...

The auditors for Weston University are conducting their audit for the fiscal year ended December 31, 2011. Specifically, the audit firm is now focusing on the audit of revenue from

Reconcile the inventory - general ledger balance, The Tonka Manufacturing C...

The Tonka Manufacturing Company conducts its annual physical inventory at the end of the calendar year as a result of the auditor's assessment of non-operating internal controls in

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd