RSM219H1 Lecture Notes - Perpetual Inventory, Consignor, Consignee

• School: UTSG
• Department: Rotman Commerce
• Course: RSM219H1
• Professor: Alexander Edwards

Document Summary

Taking a physical inventory of goods on hand and 2. Taking a physical inventory involves actually counting, weighing, or measuring each kind of inventory on hand. Companies often count their inventory when the business is at its slowest time of year. Internal control is a process designed to help an organization to achieve reliable financial reporting, effective and efficient operation and compliance with relevant laws and regulations. Counting should be done by employees who do not have custodial or record-keeping responsibilities for the inventory. Each counter should establish the validity of each inventory items. This means checking that the items actually exist, and how many there are all done, and what condition they are in . Authenticity of each inventory item should be established. The count should be done by 2 people. Pre-numbered inventory tags should be used to ensure that all inventory items are counted and that none are counted more than wants.