This chapter Audit Inventory and Distribution Cycle

1. AUDIT II
Inventory & Distribution Cycle
Chapter 14 – Bryan Luke 041911333013

4. 6 fungsi siklus persediaan
➔ Memproses Pesanan Pembelian
➔ Menerima Bahan Baku
➔ Menyimpan Bahan Baku
➔ Memproses Barang
➔ Menyimpan Barang Jadi
➔ Mengirimkan Barang Jadi

5. Audit of Inventory

6. Design & Perform TOC
1. Physical Control Over Inventory
Raw material → WIP → Finished limited to observation & inquiry
Memeriksa keamanan dari storage/Gudang untuk penyimpanan. Apabila physical control tidak memadai pada inventory
yang sulit untuk dihitung, auditor perlu memperluas observasi pada perhitungan yang memadai.
1. Documents and Records for Transferring Inventory
Verifying transfer inventory dari lokasi awal ke tempat tujuan yang terecord (exist) dengan quantity, deskripsi, tanggal
secara akurat. Setelah auditor memperoleh pemahaman atas internal control, mereka dapat melakukan uji TOC/
substantive tests dengan melakukan pemeriksaan pada dokumen dan record atas occurrence & accuracy pada transfer
goods.
Auditor dapat membandingkan completed product record dengan perpetual inventory master files untuk memastikan
manufactured goods benar-benar dikirimkan ke Gudang.

7. Design & Perform TOC
3. Perpetual Inventory Master & Transaction Files
Reliabilitas dari dokumen ini adalah timing dan extent dari auditor physical examination pada inventory, apabila perpetual
inventory master file akurat, auditor dapat melakukan tes sebelum tanggal neraca, penggunaan perhitungan fisik interim
sepanjang tahun dapat menghemat biaya dari client dan auditor dan mampu menyelesaikan audit lebih cepat, auditor juga
dapat mengurangi tes perhitungan fisik ketika control risk dari inventory record terkait rendah.
4. Unit Cost Records
Memperoleh data biaya tentang bahan baku, direct labour, manufacturing overhead adalah bagian yang penting dalam
akuntansi biaya, akuntansi biaya yang memadai harus dapat diintegrasikan dengan produksi dan catatan akuntansi yang
lain untuk dapat menghasilkan biaya semua produk yang akurat.
Valuation dari ending inventory bergantung pada design yang baik dan penggunaan pada record. Auditor harus mendesain
test yang sesuai berdasarkan pemahaman atas catatan akuntansi biaya dan luas uji untuk mengurangi substantive test.

8. Substantive Analytical Procedures

9. Substantive Tests of Detail Balance
Control:
Untuk mengevaluasi efektivitas dari prosedur client,
memungkinkan untuk membuat sebuah sugesti awal,
apabila control buruk maka auditor harus menambah waktu
untuk memastikan physical count akurat.
Timing:
Auditor memutuskan apabila physical count dapat
dilakukan sebelum akhir tahun berdasar pada akurasi
perpetual inventory files, ketika interim physical count
dilakukan auditor melakukan observasi dan menguji
accuracy untuk transaksi dari tanggal perhitungan hingga
akhir tahun. Ketika perpetual tersebut akurat, client tidak
perlu menghitung seluruh persediaan setiap tahun. Auditor
dapat membandingkan persediaan perpetual dengan
persediaan actual berdasarkan sampel pada waktu yang
tepat.

10. Substantive Tests of Detail Balance
Completeness and Cutoff:
Auditor melakukan tes cutoff pada kuitansi dan pengiriman
saat akhir tahun untuk memastikan semua item yang di
record sudah dicatat pada waktu yang tepat.
Selection of items:
Pemilihan item yang harus diperhatikan adalah item yang
paling signifikan dan sampel yang representative, auditor
juga melakukan inquiry tentang item-item yang
kemungkinan besar akan using/ rusak dan mendiskusikan
dengan manajemen alasan-alasan untuk mengecualikan
item-item yang material.

11. Review Chapter 14
Which of the following procedures will best detect the theft of valuable items from an inventory that
consists of hundreds of different items selling for $1 to $10 and a few items selling for hundreds of dollars?
(1) Maintain a perpetual inventory master file of only the more valuable items with frequent periodic
verification of the validity of the perpetuals.
(2) Have an independent CPA (Chartered Professional Accountant) firm prepare an internal control report
on the effectiveness of the administrative and accounting controls over inventory
(3) Have separate warehouse space for the more valuable items with sequentially numbered tags.
(4) Require an authorized officer’s signature on all requisitions for the more valuable items.

12. Review Chapter 14 (Answ)
Which of the following procedures will best detect the theft of valuable items from an inventory that
consists of hundreds of different items selling for $1 to $10 and a few items selling for hundreds of dollars?
(1) Maintain a perpetual inventory master file of only the more valuable items with frequent periodic
verification of the validity of the perpetuals.
(2) Have an independent CPA (Chartered Professional Accountant) firm prepare an internal control report
on the effectiveness of the administrative and accounting controls over inventory
(3) Have separate warehouse space for the more valuable items with sequentially numbered tags.
(4) Require an authorized officer’s signature on all requisitions for the more valuable items.

13. Review Chapter 14
Which of the following internal control procedures most likely would be used to maintain accurate inventory
records?
(1) Perpetual inventory records are periodically compared with the current cost of individual inventory items.
(2) A just-in-time inventory ordering system keeps inventory levels to a desired minimum.
(3) Requisitions, receiving reports, and purchase orders are independently matched before payment is
approved.
(4) Periodic inventory counts are used to adjust the perpetual inventory records.

14. Review Chapter 14 (Answ)
Which of the following internal control procedures most likely would be used to maintain accurate inventory
records?
(1) Perpetual inventory records are periodically compared with the current cost of individual inventory items.
(2) A just-in-time inventory ordering system keeps inventory levels to a desired minimum.
(3) Requisitions, receiving reports, and purchase orders are independently matched before payment is
approved.
(4) Periodic inventory counts are used to adjust the perpetual inventory records.
*Stock Opname

15. Review Chapter 14
Which of the following sets of duties related to inventory and distribution causes the greatest concern about
inadequate segregation of duties?
(1) Individuals in charge of approving disbursements related to inventory purchases have “read-only” ability to
view the list of vendors in the pre approved vendor master file.
(2) Purchasing agents who arrange for shipment of raw materials from vendors are responsible for verifying
actual receipt of the inventory items at the receiving dock.
(3) The receiving department has access to copies of the purchase orders that exclude information about
quantities ordered.
(4) Accounts payable personnel have access to receiving reports and purchase orders in addition to vendor
invoices for inventory purchase

16. Review Chapter 14 (Answ)
Which of the following sets of duties related to inventory and distribution causes the greatest concern about
inadequate segregation of duties?
(1) Individuals in charge of approving disbursements related to inventory purchases have “read-only” ability to
view the list of vendors in the pre approved vendor master file.
(2) Purchasing agents who arrange for shipment of raw materials from vendors are responsible for verifying
actual receipt of the inventory items at the receiving dock.
(3) The receiving department has access to copies of the purchase orders that exclude information about
quantities ordered.
(4) Accounts payable personnel have access to receiving reports and purchase orders in addition to vendor
invoices for inventory purchase

17. Review Chapter 14
Procedure Toc/ Substantive
Read the client’s physical inventory instructions and observe whether
they are being followed by those responsible for counting the inventory.
Account for a sequence of inventory tags and trace each tag to the
physical inventory to make sure it actually exists.
Use audit software to compute inventory turnover by major product line
and compare it to turnover in the prior year
Compare the client’s count of physical inventory at an interim date with
the perpetual inventory master file.

18. Review Chapter 14 (Answ)
Procedure Toc/ Substantive
Read the client’s physical inventory instructions and observe whether
they are being followed by those responsible for counting the inventory.
TOC
Account for a sequence of inventory tags and trace each tag to the
physical inventory to make sure it actually exists.
Substantive
Use audit software to compute inventory turnover by major product line
and compare it to turnover in the prior year
Substantive
Compare the client’s count of physical inventory at an interim date with
the perpetual inventory master file.
Substantive

19. Review Chapter 14
Procedure Toc/ Substantive
Trace the auditor’s test counts recorded in the audit files to the final
inventory compilation and compare the tag number, description,
and quantity.
Compare the unit price on the final inventory summary with
vendors’ invoices.
Account for a sequence of raw material requisitions and examine
each requisition for an authorized approval.
Trace the recorded additions on the finished goods perpetual
inventory master file to the records for completed production.

20. Review Chapter 14 (Answ)
Procedure Toc/ Substantive
Trace the auditor’s test counts recorded in the audit files to the final
inventory compilation and compare the tag number, description,
and quantity.
Substantive
Compare the unit price on the final inventory summary with
vendors’ invoices.
Substantive
Account for a sequence of raw material requisitions and examine
each requisition for an authorized approval.
TOC
Trace the recorded additions on the finished goods perpetual
inventory master file to the records for completed production.
Substantive/TOC
Accuracy & Classification