FAKULTI EKONOMI DAN PENGURUSAN

PROGRAM IJAZAH SARJANAMUDA PERAKAUNAN DENGAN KEPUJIAN

E P PA 3 0 1 3 P E N G AU D I TA N - P E N A U D I TA N
OVERVIEW OF THE INVENTORY MANAGEMENT
PROCESS

• Inventory management refers to the process of ordering, storing and

using a company's inventory. this includes the management of raw
materials, components and finished products, as well as warehousing
and processing such items.
THE RELATIONSHIP OF THE INVENTORY
MANAGEMENT PROCESS TO OTHER
ACCOUNTING PROCESSES

Inventory
Purchasing Revenue
Manageme
Process Process
nt Process

• Purchasing of • Sale of goods

raw materials
• Payment of
manufacturing Human
overhead costs Resource
Managemen
t Process
• Assignment of direct
and indirect labour
costs
 Production Schedule
Normally prepared periodically based
1
on the expected demand for the entity's
products; give auditor information on
the planned level of operating activity
5 Production Data Information
Updates the entity's perpetual inventory
system; also used as input to generate the
Receiving Report 2 cost accumulation and variance reports

TYPES OF
Records the receipt of goods from
vendors (part of purchasing process)

DOCUMENTS 6 Cost Accumulation and Variance Report

Summarizes the various costs charged to
Materials Requisition 3 departments and products
Used by manufacturing companies to
track materials during the production
AND RECORDS
process Inventory Status Report
7 Shoes the type and amount of products
Inventory Master File
Contains all the important information 4 on hand; summary of perpetual
inventory records; can also be used to
related to the entity's inventory, determine the status of goods in process
including the perpetual inventory
records

8 Shipping Order
Part of revenue process; copy of this
document is used to remove goods from
the client's perpetual inventory records
 General Ledger
Proper accumulation,
The Major Functions
classification, and
6
summarization of inventory and
related costs in the general Cost Accounting
ledger. Maintenance of the costs of
5
manufacturing and inventory
in cost records

Finished Goods Stores

Finished goods and issuance 4
of goods to the shipping Manufacturing
departments Production of
3
Raw Materials Stores
Goods Raw Materials and issuance
2
of raw materials to
manufacturing departments.

Inventory Management
Authorization of production
activity and maintenance of 1
inventory at appropriate levels;
issuance of purchase
requisitions to the purchasing
department.
INHERENT AUDIT RISKS
DEFINITION

Inherent audit risks are the risks that the material misstatements could
possibly happen in financial statements due to other reasons rather than
the failure of internal control over financial reporting as well as detection
risks. There are many reasons that lead to increase inherent risks in the
audit of financial statements.

INHERENT RISK ASSESSMENT

The auditor performs a risk assessment on the financial statements that

they are auditing. This usually happens at the planning stage of financial
statements auditing. Audit risks need to be assessed, identified, and
managed.
CONTROL RISK ASSESSMENT
DEFINITION

Assessment of control risk is a measure of the auditor's expectation that

internal controls will neither prevent material misstatements from
occurring nor detect and correct them if they have occurred; control
risk is assessed for each transaction-related audit objective in a cycle or
class of transactions.
Control Activities And Tests Of Controls :-
Inventory Transaction
Control Activities And Tests Of Controls :-
Inventory Transaction
Control Activities And Tests Of Controls :-
Inventory Transaction
Control Activities And Tests Of Controls :-
Inventory Transaction
Control Activities And Tests Of Controls :-
Inventory Transaction
Assertions About Classes Of Transaction, Events,
Account Balance And Disclosure For Inventory
Assertions about classes of transaction and events
• • Accuracy - The assertion is that the full amounts of all transactions were recorded, without error.
 • Classification - The assertion is that all transactions have been recorded within the correct accounts in the
general ledger.
 • Completeness - The assertion is that all business events to which the company was subjected were recorded.
 • Cutoff - The assertion is that all transactions were recorded within the correct reporting period.
 • Occurrence - The assertion is that recorded business transactions actually took place
Assertions about Account Balance at the Period End
•• Completeness - The assertion is that all reported asset, liability, and equity balances have been fully reported.
•• Existence - The assertion is that all account balances exist for assets, liabilities, and equity.
•• Rights and obligations - The assertion is that the entity has the rights to the assets it owns and is obligated
under its
• reported liabilities.
• • Valuation - The assertion is that all asset, liability, and equity balances have been recorded at their proper
Assertions
valuations. about Presentation and disclosure
• • Accuracy - The assertion is that all information disclosed is in the correct amounts, and which reflect their
proper values.
• • Completeness - The assertion is that all transactions that should be disclosed have been disclosed.
• • Occurrence - The assertion is that disclosed transactions have indeed occurred.
• • Rights and obligations - The assertion is that disclosed rights and obligations actually relate to the
reporting entity.
•
SUBSTANTIVE ANALYTICAL PROCEDURES
Prosedur analitik digunakan sebagai prosedur substantif apabila auditor
menganggap bahawa penggunaan prosedur analitik dapat lebih efektif atau
efisien daripada ujian perincian dalam mengurangi risiko kesalahan penyajian
material pada tingkat penegasan ke tahap rendah yang dapat diterima.

Example of substantive analytical procedure Possible Misstatement Detected

Bandingkan bahan mentah, barang siap dan jumlah
Persediaan usang, bergerak perlahan
perolehan inventori dengan tahun sebelumnya dan
atau berlebihan
purata industri
Bandingkan hari tertunggak dalam inventori dengan Persediaan usang, bergerak perlahan
tahun sebelumnya dan purata industri atau berlebihan
Bandingkan peratusan keuntungan kasar mengikut
Inventori yang tidak direkodkan atau
barisan produk dengan tahun-tahun sebelumnya dan
rekaan
data industri
Bandingkan kos sebenar barang yang dijual dengan
Inventori yang terlebih/terkurang nyata
jumlah yang dianggarkan
Bandingkan kos standard tahun semasa dengan tahun
sebelumnya setelah mempertimbangkan keadaan Inventori yang terlebih/terkurang nyata
semasa
Bandingkan kos overhed pembuatan sebenar dengan
Kemasukan atau pengecualian kos
kos overhed pembuatan yang dianggarkan atau
AUDITING STANDARD COSTS USED TO
MEASURE PERFORMANCE AND VALUE
INVENTORY
Overhead- kaji kaedah
Bahan - menguji kuantiti dan
peruntukan overhead
jenis bahan yang termasuk
pelanggan untuk kewajaran,
dalam produk dan harga
kepatuhan terhadap GAAP, dan
bahan
konsistensi

Buruh - mengumpulkan
bukti mengenai jenis dan
jumlah tenaga kerja yang
diperlukan untuk
pengeluaran dan kadar
buruh
 OBSERVING PHYSICAL INVENTORY
Sebab untuk memerhatikan inventori fizikal entiti adalah untuk membuktikan
kewujudan inventori
Pastikan tiada pengeluaran yang
dijadualkan. Sekiranya pengeluaran
dijadualkan, kawalan yang betul Lakukan kiraan ujian dan
mesti dibuat untuk pergerakan catat contoh kiraan dalam
antara jabatan untuk mengelakkan kertas kerja
pengiraan dua kali
Memastikan bahawa Dapatkan maklumat
barang-barang tidak During the kawalan tag untuk menguji
bergerak semasa kiraan penyusunan inventori
Observing physical
inventor pelanggan
inventory auditor
should do Dapatkan maklumat
Pastikan pasukan kiraan pemotongan, termasuk
following below
pelanggan mengikuti arahan jumlah dokumen
pengiraan inventori penghantaran dan
Tanyakan mengenai penerimaan terakhir yang
Pastikan tag inventori Perhatikan keadaan
dikeluarkan
barang yang dipegang
dikeluarkan secara inventori untuk item yang
pada konsinyasi untuk
berurutan ke jabatan mungkin usang, bergerak
orang lain atau
individu perlahan, atau dibawa
disimpan berdasarkan
dalam jumlah yang
"tagihan dan pegangan"
berlebihan
 TEST OF DETAILS OF CLASSES OF
TRANSACTION, ACCOUNT BALANCE AND
DISCLOSURE
Kejadian- Voucher Kelengkapan- Jejak Kebenaran- Uji sampel
contoh persediaan contoh penerimaan penghantaran inventori untuk
tambahan untuk laporan ke rekod memastikan ada tiket
menerima laporan dan inventori penghantaran dan penjualan
permintaan pembelian pelanggan yang disetujui

Substantive tests of transaction

Ketepatan- Mengira ketepatan Klasifikasi - memeriksa

Potong - Jejak contoh
matematik sampel transaksi contoh pemeriksaan
kad masa sebelum dan
inventori. Katil standard audit inventori untuk
selepas tempoh berakhir
atau kaedah lain yang klasifikasi yang betul ke
ke laporan inventori
digunakan untuk menentukan dalam akaun
mingguan yang sesuai
harga inventori perbelanjaan
TEST OF DETAILS OF ACCOUNT BALANCES
Kehadiran –menghitung
jumlah inventori fizikal

Hak dan kewajiban -

Kesempurnaan - jumlah mengesahkan bahawa
ujian jejak dan maklumat inventori yang dipegang pada
kawalan tag ke konsainan untuk orang lain
penyusunan inventori atau barang "bill-and-hold"
tidak termasuk dalam inventori

Penilaian dan peruntukan- Dapatkan salinan penyusunan

inventori dan setujui jumlah keseluruhan buku besar. Uji ketepatan
sambungan matematik dan buat penyusunan inventori. Pertanyaan
pengurusan mengenai inventori usang, lambat bergerak, atau
berlebihan. Kaji penyesuaian buku-ke-fizikal untuk kemungkinan
salah nyata
 TEST OF DETAILS OF DISCLOSURES
Kejadian dan hak dan kewajiban- tanyakan kepada
pihak pengurusan dan kaji semula perjanjian
Kelengkapan- pelaporan kewangan lengkap
pinjaman dan minit pengarah untuk mana-mana
senarai semak untuk memastikan bahawa
menunjukkan bahawa inventori telah
semua kewangan pendedahan penyataan yang
berjanji atau ditugaskan. Pertanyaan
berkaitan dengan inventori dibuat.
mengenaipengurusan mengenai isu
berkaitan dengan tanggungjawab
jaminan Test of details of
disclosures
Pengelasan dan pemahaman- Ketepatan dan penilaian- tentukan sama ada
mengkaji penyusunan inventori untuk kaedah kos tepat didedahkan. Pertanyaan
pengelasan yang betul antara mentah pengurusan mengenai isu-isu yang berkaitan
bahan, kerja dalam proses, dan selesai dengan pembubaran LIFO. Baca nota kaki dan
barang. Baca nota kaki untuk memastikannya maklumat lain untuk memastikan bahawa
pendedahan yang diperlukan dapat difahami maklumat itu tepat dan harta yang ditunjukkan
pada jumlah yang sesuai
 TEST OF DETAILS OF DISCLOSURES CONT.

cutoff- mengumpulkan
Kelengkapan -
Ketepatan bukti-bukti mengenai kewujudan- adalah
juruaudit mesti
mengumpulkan bukti pernyataan penghentian pernyataan yang lebih
menentukan sama ada
mengenai ketepatan inventori, juruaudit penting untuk akaun
semua inventori telah
inventori memerlukan berusaha untuk inventori. Kehadiran
dimasukkan dalam
memperoleh salinan menentukan sama ada juruaudit pada kiraan
penyusunan inventori
penyusunan inventori semua penjualan barang inventori fizikal entiti
dan akaun inventori
fizikal yang siap yang dibeli bahan adalah langkah pertama
lejar umum. Jumlah ini
menunjukkan kuantiti mentah direkodkan yang digunakan untuk
memberi jaminan
dan harga inventori dalam jangka masa yang membuat pengesahan
Rights and bahawa semua barang
tepat.
obligations Classification And yang ada adalah
the auditor must recorded Understandability- The inventori
inventory is actually owned Other Presentation And
Valuation and Presentation And
by the entity,two issue can Disclosure Assertions-
allocation- first issue Disclosure Assertion Of
arise: some Example Of
relates to the costs Classification Of
1. Auditor must be sure that Disclosure Item For
used to value the Inventory For Earth
the inventory on hand Inventory And Related
inventory item Wear Is Not An Issue
belongs to the entity. To Accounts
included in the Because The Company
2. Some industry gods are
sold on a “bill-and-hold” compilation. Sells Only Finished
basis. Products
 EXAMPLE OF DISCLOSURE ITEMS FOR
INVENTORY AND RELATED ACCOUNTS

Cost Method (FIFO Or Weighted

Purchase From Related Inventory
Average)

Components Of Inventory Pledged or assigned inventory

Expenses From Write-downs Of

Long-term Purchase Contracts Inventory Or Losses On Long-term
Purchase Commitments

Consigned Inventory Warranty Obligations

EVALUATING THE AUDIT FINDINGS INVENTORY

The auditor should aggregate all identified misstatements the likely misstatements
compared to the tolerable misstatement allocated to the inventory account