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Physical Inventory:
It is just a discussion. No need for APA formatting. Since it is year-end, you have decided that it is time for Ed to complete a physical inventory of parts and finished goods.
Ed is telling you that he has never done this before and doesn't believe it necessary because "everyone always keeps good records of what is used and sold.
" Discuss why you feel Ed needs to conduct a physical inventory. How will this impact the financial statements?
Write a proposed policy for Ed's office procedures manual including details of why an inventory count is necessary, how and when the inventory count will be conducted, and who will be responsible for ensuring the count is completed.
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