如何成为合格的审计咨询师16.ppt

Audit of the Inventory and Warehousing Cycle,Chapter 16,Learning Objective 1,Identify the business functions and the related documents and records in the inventory and warehousing cycle.,Functions in the Inventory and Warehousing Cycle,Process purchase orders,Store raw materials,Receive raw materials,Functions in the Inventory and Warehousing Cycle,Store finished goods,Ship finished goods,Learning Objective 2,Describe how e-commerce affects inventory management.,How E-Commerce Affects Inventory Management,The Internet enables clients to provide expanded descriptions of their inventory on a real-time basis.,The use of the Internet and other e-commerce applications may lead to financial reporting risks if access to inventory databases and systems is not adequately controlled.,Learning Objective 3,Explain the five parts of the audit of the inventory and warehouse cycle.,Audit of Inventory,Internally transfer assets and costs.,Inventory and warehousing,Audit of Inventory,Physically observe inventory.,Price and compile inventory.,Cycle in which tested,Ship goods and record revenue and costs.,Part of audit,Sales and collection,Inventory and warehousing,Inventory and warehousing,Learning Objective 4,Design and perform audit tests of cost accounting.,Cost Accounting Controls,2. Controls over the related costs,1. Physical Controls,Raw materials,WIP,Finished goods,over,Tests of Cost Accounting,Physical Controls,Documents and records for transferring inventory,Perpetual inventory master files,Unit cost records,Learning Objective 5,Apply analytical procedures to the accounts in the inventory and warehousing cycle.,Analytical Procedures for Manufacturing Equipment,Compare inventory turnover Obsolete inventory (cost of goods sold divided Overstatement or by average inventory) with understatement of that of previous years. inventory,Analytical Procedures for Manufacturing Equipment,Analytical Procedure Possible Misstatement,Compare unit costs of Overstatement or inventory with those of understatement of previous years. unit costs,Compare extended Misstatements in inventory value with that compilation, unit of previous years. costs, or extensions,Analytical Procedures for Manufacturing Equipment,Analytical Procedure Possible Misstatement,Compare current year Misstatement of unit manufacturing costs with costs of inventory, those of previous years especially direct (variable costs should be labor and adjusted for changes in manufacturing volume). overhead,Methodology for Designing Tests of Details of Balances,Identify client business risks affecting the inventory and warehousing cycles.,Set tolerable misstatement and assess inherent risk for the inventory and warehousing cycles.,Assess control risk for several cycles.,Methodology for Designing Tests of Details of Balances,Design and perform tests of controls and substantive tests of transactions for the several cycles.,Design and perform analytical procedures for the inventory and warehousing cycle.,Methodology for Designing Tests of Details of Balances,Design tests of details of inventory to satisfy balance-related audit objectives.,Audit procedures,Sample size,Items to select,Timing,Learning Objective 6,Design and perform physical observation audit tests for inventory.,Controls,Proper instructions for the physical count,Supervision by responsible personnel,Independent interval verification of the counts,Independent reconciliations of the physical counts with perpetual inventory master files,Adequate control over count sheets or tags,Selection of items,Sample size,Timing,Audit Decisions,Physical Observation Tests,The most important part of the observation of inventory is determining whether the physical count is being taken in accordance with the clients instructions.,Balance-Related Objectives: Physical Inventory Observation,Existence,Completeness,Accuracy,Inventory as recorded on tags exist.,Existing inventory is counted and tagged.,Inventory is counted accurately.,Classification,Cutoff,Inventory is classified correctly on the tags.,Transactions are recorded in the proper period.,Balance-Related Objectives: Physical Inventory Observation,Balance-Related Objectives: Physical Inventory Observation,Rights,The client has rights to inventory recorded on tags,Realizable Value,Obsolete and unusable inventory items are excluded or noted.,Learning Objective 7,Design and perform audit tests of pricing and compilation for inventory.,Audit of Pricing and Compilation,Inventory compilation tests,Inventory price tests,Valuation of inventory,Pricing and compilation procedures,Pricing and compilation controls,Audit of Pricing and Compilation,Balance-Related Objectives: Inventory Pricing and Compilation,Detail tie-in,Existence,Completeness,Accuracy,Balance-Related Objectives: Inventory Pricing and Compilation,Classification,Realizable value,Rights,Presentation and disclosure,Valuation (Pricing) of Inventory,Pricing Purchased Inventory,Pricing Manufactured Inventory,Cost or Market,Learning Objective 8,Integrate the various parts of the audit of the inventory and warehousing cycle.,Interrelationship of Various Audit Tests,Tests of acquisition and payment cycle,Raw materials Acquisitions of raw materials,Work in process Other manufacturing overhead,Interrelationship of Various Audit Tests,Tests of payroll and personnel cycle,Work in process Direct labor,Work in process Indirect labor,Interrelationship of Various Audit Tests,Inventory tests,Raw materials Ending inventory,Work in process Ending inventory,Finished goods Ending inventory,Interrel