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inventory count -TOC

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › inventory count -TOC

  • This topic has 2 replies, 2 voices, and was last updated 1 year ago by Kim Smith.
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  • July 11, 2021 at 11:13 am #627434
    Noah098
    Member
    • Topics: 935
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    Maam i have a doubt in the following TOC:

    “Inspect the updated inventory count instructions to verify that they have been communicated to members of staff outside the warehouse department.”

    why should members of staff outside the warehouse department be informed about eh total inventory count? i really don’t see a lot of sense in this…can you shed some light?

    July 11, 2021 at 1:31 pm #627442
    Noah098
    Member
    • Topics: 935
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    • ☆☆☆☆☆

    “Review the rota for break?times to ensure break times are formally communicated to staff.”

    i understand ma’am that the two TOCs may be set in different scenarios/contextually different but i feel they are somehow related.

    Could you explain why they are a necessary TOC and what purpose do they exactly serve?

    July 11, 2021 at 5:17 pm #627465
    Kim Smith
    Keymaster
    • Topics: 100
    • Replies: 6786
    • ☆☆☆☆☆

    I don’t know where you are getting these from – but they are not TOCs – but merely providing information that would assist in assessing the risk of misstatement.

    The principle of “segregation of duties” means that someone should not be responsible for the recording of assets and their custody. If only warehouse personnel were involved in counting physical inventory and recording count quantities, if they were to find errors/discrepancies with stock records, they might be less likely to identify shortfalls (in particular) if they realise they have made some error/or some inventory has gone missing – or even cover up errors/discrepancies (which would then make the matter one of fraud). Therefore both warehouse staff (who have expertise in knowing the inventory and its whereabouts) will be involved in the count – but paired up with staff from other departments to bring independence to the process.

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