Oceanview Marine Company Audit Program Inventories December 31, 2018 AUDIT PROCEDURES MODIFICATIONS TO AUDIT PROGRAM 1. Based on the results of previous audit procedures, complete appropriate modifications to this program. PHYSICAL INVENTORY COUNT 2. Inquire as to the number of locations of inventory storage facilities. Co E 3. Tour the inventory storage and production facilities with a member of the client's organization. 22-3 BC 2/09/2019 W/P INIT COMMENTS 93-1 BC As noted below. BC 99 99 BC One location only. Some areas a little untidyto be mentioned in management letter. Toured with Arvin Phillips Dec. 31, 2018. 4. If inventory is stored in a public warehouse, determine from the warehouse supervisor which areas are rented to the client. 5. Determine if stored inventory is held on consignment and ensure that this is not included in the client's inventory count. 6. Determine if a third party is holding goods on consignment for the client and make arrangements to count this inventory. 7. If the client has inventory stored at different locations, ensure that this inventory is being counted on the same day and is attended by an appointed secondary auditor. 8. Review the client's inventory count instructions, and ensure that an accurate count can be taken and that inventory is arranged so it can be easily counted. Audit Objectives: Co E E Co 99 BC N/A 99 BC N/A 99 BC N/A Co E BC N/A. Only one location. Co E A BC Accuracy Classification Completeness Cutoff Detail tie-in Existence Except as noted above, it is OK. Instructions are clear and counters have done this before. No problems are anticipated. P 1 | 5 | C |