Inventory system controls
Inventory system controls govern activities such as ordering, receiving, storing, counting and recording inventory. Auditors identify relevant control objectives, assess risks and test controls or perform substantive procedures as appropriate.
Worked example
Goods received are counted and compared with the purchase order; inventory records are updated and discrepancies are investigated.
Common mistake
A reliable perpetual record does not remove the need to consider count procedures, cut-off, ownership and valuation.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |