Audit Procedures for Inventory (5)

Question 1

Cut-off (GDN GRN)

Answer 1

Numbers of last GDNs and GRNs before year end and first GDNs and GRNs after year end and check that these have been included in correct financial year

Question 2

Classification (inventory listing)

Answer 2

Review inventory listing to ensure that inventory has been properly classified between raw materials, work-in-progress and finished goods

Question 3

Classification (notes inventory)

Answer 3

Read notes to the accounts relating to inventory to ensure they are understandable

Question 4

Presentation (disclosure checklist)

Answer 4

Complete disclosure checklist to ensure all disclosures relevant to inventory have been made

Question 5

Presentation (financial statements)

Answer 5

Review financial statements to confirm whether cost method used to value inventory is accurately disclosed

Question 6

Presentation (notes appropriate amounts)

Answer 6

Read notes to FSs to ensure that the information is accurate and properly presented at appropriate amounts