Acc 492

frequencies signal a deduction of inventory to the perpetual inventory system.

7. On a weekly basis, inventory accounting personnel take samples of inventory products selected from the perpetual inventory system and verify that the inventory is on-hand in the warehouse and that the quantities in the listing are correct.

8. On a weekly basis, inventory accounting personnel select inventory items on hand in the warehouse and verify that the item is included in the perpetual inventory listing at the correct amount.

9. The perpetual inventory system subtotals the quantity of inventory in the system and interfaces with the general ledger system on a daily basis to ensure quantities agree.

10. The perpetual inventory system will not accept inventory additions without the recording on a valid receiving report.

For each of the internal controls: Required a. Identify the related transaction-related audit objective(s) affected by the control. b. Describe risks the control is designed to mitigate. c. Design a test of control to determine if the control is operating effectively.

----------------------------------------------ACC 492 Week 4 Current Issue Summary auditing acquisitions, payments, property plant and equipment