Work In Progress
What such applies to goods for resale applies uniformly to work in progress even when the items present greater problems of valuation and ascertainment to the auditor and to the directors. The auditor's investigations will involve:
a) Enquiry into the costing system from such work in progress is ascertained.
b) Enquiry into how really reliable the costing system is. The costing system integrated along with the financial system will be much more reliable since of the discipline of double entry and the inherent checks imposed through external data that as creditors statement.
c) Enquiry into checks such is made as part of the system on statistical data relating inputs of materials and expectations and outputs of products.
d) Enquiry into the system of reporting and inspecting on work done so such allowance is made for rectification and scrapping work.
e) Determining the basis on those overheads are involved in costs and ensuring about this is based on IAS 2.
f) Making enquiry into the basis on as any profit or benefit elements are dealt along with. Profit should be eliminated by work in development.
g) Wherever the organization constructs internally several of its own fixed assets, the auditor must make sure about such items as are within construction at the year finish are not accounted for twice that is in fixed assets and in work in growth.