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in a scenario, we were asked to list procedures during the inventory count for 6 marks.
3 of my answers matched the answer given but 3 did not. these were
1. inspect count sheets for evidence of signature of the team member who counter checks the quantity
2. ensure that quantities are filld in pen and not in pencil
3. ensure that no member of the warehouse staff is participating in the count.
are these valid procs for DURING THE INV COUNT?
thanks
Your points are fine.
The last one is fine in theory but difficult in practice as non-warehouse staff might not know exactly what they are counting. A mixed team is good.
The last point even appear in acca marking schemes too. They mention that, the counting team should be independent to the warehouse e.g internal auditors.
-what about time tabling the counts to ensure that all areas are covered
– separating obsolete and damaged inventories from the rest. Ensure that these are included in the inventory count. Only another member of finance can make an assessment of how to provide and write down the inventory
-ascertain that movements of inventory has been stopped during counting to avoid double counting or ommiting certain linesThe last point might be in the ACCA marking scheme, but I can tell you that after attending many stock counts, it is pretty much essential to have people from the stores/warehouse involved. The presence of someone form IA or accounts provides the independence and they might do the counting, but normally accounting staff have no idea what they are looking at in, say, an engineering company. It would, of course, be unsatisfactory to have a team of just warehouse staff.
I’ve never discovered any ISA requirement stating that the count team had to be independent.
Your other suggested procedures would be fine as part of the (presumably) 6 required for that part of teh question.
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