Get documents about "Audit Test on Stocks
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Audit Test on Stocks document sample
Document Sample
Contributed 3/10/00 by Peter Law luozq@gnpjvc.com.cn
WP Ref.
ABC COMPANY LIMITED
AUDIT DEPARTMENT
AUDIT PROGRAM
Audit Unit: Warehouse Management Prepared by: Date:
Segment:Organisation, environment controls & Reviewed by: Date:
management of the warehouse
AUDIT OBJECTIVES AND W/P RESULT OF TEST/ INITIAL &
TESTING PROCEDURES REF. AUDIT FINDINGS DATE
Audit Objectives:
To determine that the organisation of the
warehouse, the environment and management are
appropriate to facilitate the compliance with
company policies.
Audit Procedures:
1.Obtain an up-to-date organisation chart of
the warehouse management & evaluate the
adequacy of segregation of duties &
supervisory controls.
2.Document and evaluate the system of
area/rack coding which facilitates orderly and
prompt storage/retrieval.
3.Document and evaluate the physical access
control system installed.
4.Observe and evaluate the environment of the
warehouse with respect to housekeeping,
physical layout, maintenance, fire protection,
dust/temperature/humidity control, protective
coverings/packagings including the provision
of weight lifting facilities & their proper
maintenance.
5.Assess the system of physical stocktaking
with respect to frequency, coverage,
participation of third parties, reconciliation
and treatment of discrepancies.
6.Review the progress of goods transfered from
the contractors of various major contracts to
the warehouse. Update the procedures if
necessary.
WP Ref.
ABC COMPANY LIMITED
AUDIT DEPARTMENT
AUDIT PROGRAM
Audit Unit: Warehouse Management Prepared by: Date:
Segment:Receiving, Issuing and Returning Reviewed by: Date:
of goods to warehouse
AUDIT OBJECTIVES AND W/P RESULT OF TEST/ INITIAL &
TESTING PROCEDURES REF. AUDIT FINDINGS DATE
Audit Objectives:
To ensure that the system in operation on
receiving, issuing and returning of goods to
warehouse is effective, efficient and has
embodied a proper system of internal controls.
Audit Procedures:
1.Document and evaluate the system of goods
receiving, issuance and returning to the
warehouse.
2.Conduct a walk-through test on goods
receiving, issuance and returning to the
warehouse.
3.Select an appropriate sample of transactions
to ensure that laid down procedures are
adhered to.
4.Review the system of information flow to
Finance Department and ascertain any
deficiencies therein.
WP Ref._____
ABC COMPANY LIMITED
AUDIT DEPARTMENT
AUDIT PROGRAM
Audit Unit: Warehouse Management Prepared by: Date:
Segment: Inventory Recording System Reviewed by: Date:
AUDIT OBJECTIVES AND W/P RESULT OF TEST/ INITIAL &
TESTING PROCEDURES REF. AUDIT FINDINGS DATE
Audit Objectives:
To determine that the automated system of
inventory recording is operating effectively
and efficiently with adequate controls.
Audit Procedures:
1.Document and evaluate the system hardware
and software configuration and assess general
EDP controls of the system, in particular
access controls.
2.Obtain and evaluate hardcopies of computer
reports generated by the system.
3.Document and evaluate controls over inputs
into the system.
4.Document and evaluate controls over
processing of the system.
5.Document and evaluate controls over outputs
of the system.
WP Ref. ____
ABC COMPANY LIMITED
AUDIT DEPARTMENT
AUDIT PROGRAM
Audit Unit: Warehouse Management Prepared by: Date:
Segment: Intermediate Storage Areas Reviewed by: Date:
AUDIT OBJECTIVES AND W/P RESULT OF TEST/ INITIAL &
TESTING PROCEDURES REF. AUDIT FINDINGS DATE
Audit Objectives:
To ensure that the management of Intermediate
Storage Area by various branches & contractors
is effective and efficient with adequate
controls.
Audit Procedures:
1. Review the organisation of the Intermediate
Storage Area by various branches & contractors
and evaluate the adequacy of segregation of
duties & supervisory controls.
2.Review on the administrative procedures on
ite Material Management & Storage” and
examine the soundness of procedures and the
manner in which such procedures are complied
with.
3. Scrutiny the register of the Intermediate
Storage Areas kept by the Material Management
Section of OCS & search for any non
compliance.
4. Examine the stock records kept by various
branches & contractors in the context of
completeness, accuracy & reliability and
ascertain any potential weaknesses in record
keeping and stock taking.
5. Select a sample from some major/high risk
Intermediate Storage Areas and perform random
test counts on various stocks. If possible,
prepare an observation summary when the stock
taking is being performed.
6. Assess the adequacy of the role played by
the Material Management Section in overseeing
the operation of the Intermediate Storage
Areas.
ADDENDUM
INPUT CONTROLS
1. How is data captured? Where is the source document, mode of input(batch or on-line)?
2. Who has the responsibility of data input?
3. How is security enforced(e.g. password)?
4. What system is in place to ensure that inputs are complete and authorised?
5. What is the system, if any, for ensuring the accuracy and validity of data input
into the system?
6. How are parts/consumables name duplication avoided in case different names are used
for the same item in different times or by different buyers? Document the cataglogue
system in use.
PROCESSING CONTROL
1. Is there a hierachy of authority to access the system for the purposes of reading,
writing or editing data? Who has authority to change it? How is authority to access
enforced(e.g. password/user ID)?
2. Has the warehouse staff authority or the facilities to access the operating
system/application programs?
3. Who has the authority to change the program codings? What is the chain of
authority/communication for system changes? Who is responsible for liaising with the
computer centre?
4. Is there a system log to record access, modules retrieved and/or functions
performed?
5. Does the warehouse print out regularly a hardcopy of the inventory master file as a
quick reference/record?
6. Select 5 transactions each involving addition, deletion and amending of inventory
item records in the master file to verify that processing is accurate.
7. Select 10 transactions each involving quantity additions and subtractions to verity
that arithmetic processing is accurate.
8. Is there an up-to-date set of operation manual for reference of responsible staffs?
Who is responsible for its updating? If there is no operation manual, what do staffs
do when they come across problems?
9. Is computing resources sufficient for the warehouse staffs to carry out their duties
having regard to the number of staffs and workload? Who has the authority to approve
request for resource additions?
OUTPUT CONTROL
1. Is there a system to decide the WHEN, WHAT AND FOR WHOM of report generation?
2. Who is responsible for giving the final decision to output formats? What are the
arrnagements for gathering requirements of users?
3. Are there any designated staff responsible for checking the accuracy of outputs?
4. Is there a policy of output retention in terms of which reports to retain and for
how long?
