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Name
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Prepared
by: |
File
ref: |
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Year end: |
Reviewed by: |
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Subject: Stock cut off |
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Objective |
To ensure that stock has been correctly cut off. |
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Method |
From the trade customers’ goods delivered note files, select the last five delivery notes before the year end, and the last five delivery notes after the year end. Note the details and ensure they have been correctly excluded from the stock count. Agree to the sales invoice, and ensure no double counting by including a credit in closing stock under cost of sales. From the trade suppliers’ goods delivered note files, select the last five delivery notes before the year end, and the last five delivery notes after the year end. Note the details and ensure they have been correctly recorded in/excluded from the stock count. Agree to the purchase invoice, and ensure the corresponding debit has been recorded in cost of sales to avoid recording a credit in closing stock without a corresponding debit in purchases. Ensure margins are properly recorded by allocating costs to cost of sales and not distribution or administrative expenses. |
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Result |
Page ref: Comments: |
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Conclusion |
According to the audit work performed, the objective has been met/has not been met. Problems recorded: |
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©Lynnix (UK) Ltd 19
Oct 2007