Miscellaneous Cycles

Question 1

What are The Major Objectives of Internal Controls for Production/Manufacturing Inventory?

Answer 1

1 The resources obtained and used in production (including raw materials, work-in-process, and finished goods) are accurately recorded on a timely basis.
2 Transfers of finished products to customers or others are accurately recorded.
3 Related expenditures are appropriately classified.
4 Access to all categories of inventory (and inventory-related documents) is limited to authorized personnel.
5 Comparisons of actual inventory on hand are made to recorded amounts at least annually