Objective – to determine whether: |
Procedure: |
Inventory/assets recorded are valid |
- Random samples are obtained and traced bi-directionally
- Observation of movements of inventory/assets during counts
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Inventory/assets are clearly tagged |
- Observation during site visit
- Determine location of all locations where inventory/assets are maintained
- Observation of procedures for the issue and return of count sheets
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Inventory/assets are owned (in the case of items belonging to contractors/other suppliers) |
- Observation for any indications of non-ownership
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Inventory/assets counts are accurate |
- Observation of processes
- Reperformance of counts
- Trace counts back into inventory/assets ledgers
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Inventory/assets are not being carried in excess of the recorded valuation |
- Identification of obsolete/damaged/redundant items through observation and review of inventory/asset records
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Classification of inventory/assets |
- Obtain samples and trace into inventory/asset ledgers
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Correct allocations to reporting periods |
- Observation of inventory/asset movements during stocktake
- Perform cut off tests including:
- Last transfer/shipping document prior to count
- First transfer/shipping document after count
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