Detail work on stocks - audit of current assets, Auditing

Detail work on stocks - Audit of Current Assets

Detail work on stocks is imperative in an audit, since there are other review tests that are equally important and these include:

a) Quantity reconciliation of changes in stocks at successive period ends along with records of movements that are issues and receipts.

b) Comparison of quantities of every kind of stock held in one year end along with those held on a previous year end and the related issues and receipts.

c) The gross profit ratio is compared to that of the previous year, other companies and budget.

d) Review of rate of stock turnover along with previous year.

e) Comparison of stock pictures and budgets for stocks, purchases and sales.

f) Consideration of standard costing records, the treatment of variances in such the valuation of work and stocks in progress.

Posted Date: 1/25/2013 3:01:04 AM | Location : United States







Related Discussions:- Detail work on stocks - audit of current assets, Assignment Help, Ask Question on Detail work on stocks - audit of current assets, Get Answer, Expert's Help, Detail work on stocks - audit of current assets Discussions

Write discussion on Detail work on stocks - audit of current assets
Your posts are moderated
Related Questions
The management of a newly incorporated company is unsure as to the need for an audit. Your services have been requested to explain to management the concept of auditing. Requir

Existence - Audit Process In the case of tangible assets existence is confirmed through the auditor visually, considering the asset examining and concerned its condition.  Thi


Seek Out Transactions with Related Parties  Within the course of the audit, the auditor carries out process that may identify the existence of transactions along with related

Skills and Objectivity of Expert The skills and competence of the expe rt Whether planning to require the work of an expert, so the auditor should assess the professiona

Action if Management Refuses to Provide Representations If management refuses to provide a representation that the auditor considers essential, this constitutes a scope restric

What fundamental accounting concepts must you keep in mind in preparing to carry out your audit? Accounting Concept and Records Fundamental Accounting concepts are cove

Plant and Machinery - Valuation and Authorization Valuation Valuation is at depreciated historic costs.  Auditor's duty is to make sure that the accounting policy for dep

Investment - Audit Process The investment is held for wealth generation that as interest and dividends on shares and capital growth and loan notice.  Recent investments are re

Capital Commitments - Audit Process The Companies Act needs capital commitments be disclosed through a way of note to the accounts.  Therefore the auditor must execute suffici