Planning an inventory audit

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Reference no: EM13817431

Planning an Inventory Audit

You will analyze a company's current inventory setup and determine the course of action to take to audit the client's inventory. In order to successfully audit inventory, a thorough plan must be devised to ensure all facets are accounted for.

The Crafty Craft Corner has been asked by its bank to perform an audit, which it has never done before. Part of this audit is to perform a year-end physical inventory. The store uses a periodic inventory system, as management does not feel it's necessary to track every bead and button sold.

  • As the auditor hired to perform the inventory audit, what are your recommendations to the store management to prepare for the audit?
  • Would you suggest they implement a perpetual inventory system? What documentation would you request the managers create regarding their inventory?
  • What other steps would you recommend to ensure a smooth process?

Reference no: EM13817431

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