As an auditor, justify the following requirements:(a) List the principal procedures which the auditors should carry out when planning attendance at a company's physical inventory count. Justify as a case : How does a company's inventory management system impact the auditor's planning process for attending a physical inventory count? (b) Describe the procedures which Camry Products should establish in order to ensure that all inventory items are counted and that no item is counted twice. Justify as a case :How does Camry Products' establishment of procedures to ensure accurate and non-duplicated inventory counts impact the auditor's planning process for attending a physical inventory count?
In connection with your examination of the financial statements of Camry Products Co, a
limited liability company, for the year ended 31 March 20X9, you are reviewing the plans
for a physical inventory count at the company's warehouse on 31 March 20X9. The
company assembles domestic appliances, and inventory of finished appliances,
unassembled parts and sundry inventory are stored in the warehouse which is adjacent
to the company's assembly plant. The plant will continue to produce goods during the
inventory count until 5pm on 31 March 20X9. On 30 March 20X9, the warehouse staff will
deliver the estimated quantities of unassembled parts and sundry inventory which will be
required for production for 31 March 20X9; however, emergency requisitions by the
factory will be filled on 31 March. During the inventory count, the warehouse staff will
continue to receive parts and sundry inventory, and to dispatch finished appliances.
Appliances which are completed on 31 March 20X9 will remain in the assembly plant until
after the count has been completed.
As an auditor, justify the following requirements:(a) List the principal procedures which
the auditors should carry out when planning attendance at a company's physical inventory
count.
Justify as a case : How does a company's inventory management system impact the
auditor's planning process for attending a physical inventory count?
(b) Describe the procedures which Camry Products should establish in order to ensure
that all inventory items are counted and that no item is counted twice.
Justify as a case :How does Camry Products' establishment of procedures to ensure
accurate and non-duplicated inventory counts impact the auditor's planning process for
attending a physical inventory count?
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