Aud Cave Croc - Inventory

Front 1

Substantive Testing of Inventory (CAVE CROC)

Completeness

Back 1

tested by calculating & comparing ratios for current period & prior periods, industry norms, verical analysis, nonfinanical info (sales volume in boxes or pounds)

Front 2

Substantive Testing of Inventory (CAVE CROC)

Accuracy

Back 2

tested in part by comparing balance directly from general ledger with balance that is presented on fs

Front 3

Substantive Testing of Inventory (CAVE CROC)

Valuation & allocation

Back 3

tested by comparing recorded cost with current replacement cost of goods; calculating turnover ratio; costing manufactured goods for inclusion of direct materials; labor & allocation of overhead

Front 4

Substantive Testing of Inventory (CAVE CROC)

Existence

Back 4

tested by observation of inventories and test counts

Front 5

Substantive Testing of Inventory (CAVE CROC)

Cutoff

Back 5

tested by examining recording of transactions for sales and purchases just before and after year end

Front 6

Substantive Testing of Inventory (CAVE CROC)

Rights & Obligations

Back 6

tested by vouching sample of recorded inventory items to payment records, considering industry or client practices or consigned goods

Front 7

Substantive Testing of Inventory (CAVE CROC)

Occurrence

Back 7

vouching of sample of recorded purchases and cost of sales transactions back to supporting documentation

Front 8

Substantive Testing of Inventory (CAVE CROC)

Classification & understandability

Back 8

tested by reading fs to determine accounts are properly reflected and notes adequately informative; inquireing of mgt about consigned goods, major purchase commitments, pledging of inventory & other significant transactions or events