Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Audit Planning - Purchases Transaction Cycle The internal auditor of Book Worm has just completed the annual planning meeting of the Audit Committee and has

  1. Audit Planning - Purchases Transaction Cycle

The internal auditor of Book Worm has just completed the annual planning meeting of the Audit Committee and has agreed to the following objectives for the following financial year:

  1. To coordinate a review of the Purchasing and Accounts Payable functions, which will complement the external auditor's review of trade creditors and accrued charges.
  2. To perform an operational audit of the Purchasing function.
  3. To perform a review of inventory levels and the identification of the extent of any slow moving and obsolete inventory holdings
  4. To review the levels of risk relevant to the inventory levels in each store and the warehouse.

The purchasing department consists of the following:

  • A supply manager, reporting to the managing director.
  • A purchasing officer, reporting to the supply manager.
  • An administrative support supervisor, who reports to the purchasing officer.
  • Two administrative support officers, reporting to the administrative support supervisor.

Required:

  1. Develop a plan to identify slow moving inventory items and the procedures to be followed.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Risk Based Approach to Conducting a Quality Audit

Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg

10th edition

1305080572, 978-1305465664, 1305465660, 978-1305080577

More Books

Students also viewed these Accounting questions

Question

7 How can a culture encourage ethical (or unethical) behaviour?

Answered: 1 week ago