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?
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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