BUS 426 Chapter 19: Bus 426 - Chapter 19

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 426
• Professor: Michael Favere- Marchesi

Document Summary

Chapter 19 - audit of the inventory and warehousing cycle. Functions in the cycle and internal controls. Process purchase orders (what inventory the company should get more of) Perpetual inventory files: perpetual inventory data files: contains recorded of inventory items purchased, used, sold and on hand for merchandise, raw materials and finished goods. Acquire and record raw materials, labour and. Ship goods and record revenue and costs. Inventory price tests: audit procedures used to verify the costs used to value physical inventory. Inventory compilation tests: audit procedures used to verify whether physical counts of inventory were correctly summarized, inventory quantities and prices were correctly extended and extended inventory was correctly footed. Cost accountings are controls related to the physical inventory and the consequent costs, from raw materials requisitioning through to completed manufacturing and storage. Tests of cost accounting tests these areas: physical controls. Chapter 19 - audit of the inventory and warehousing cycle: documents and records for transferring.