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Sir
1)If the inventory which is not listed on the sheets is to be entered onto separate sheets which are not sequentially numbered. What impact will this deficiency cause and also what we can write in
1)Recommendation/control and
2)TOC
of it.2) If the sheets are completed in ink , then what impact will this deficiency cause and also what we can write in
1)Recommendation/control and
2)TOC
of it.1
1 Recommendation: The extra sheets should be sequentially numbered
2 TOC = check all sheets are accounted for.2 Completing the sheets in ink is NOT a deficiency. Completing them in pencil would be because they can be changed.
1)If the inventory which is not listed on the sheets is to be entered onto separate sheets which are not sequentially numbered
Then what impact this deficiency will cause?And in its recommendation and TOC writing the below in enough or will we have to explain it more?
The separate sheets should be sequentially numbered
Ask for a sample of separate sheet to see whether they are sequentially numbered or not.2) Sir in lemon quartz (J16) question says that count will be undertaken by 15 teams of 2 counters from warehouse dept with Quart’z financial controller providing overall supervision. Sir in this can we write the following impact of deficiency, recommendation and TOC
As financial controller is supervising the count he will not be independent and any fraud committed by him will not be discovered.
He should not supervise the count. An independent person preferably an internal audit manager should supervise the count.
Ask for a sample of count sheet to check the signature1 Fine
2 Generally, the financial controller would be senior enough to supervise the count. IA could do so if there is an IA department. The financial controller might be embarrassed about discrepancies, but they would probably be the fault of warehouse staff and more junior employees.
2) So instead of that should I write the following , is it fine?
As warehouse team will perform the count they will not be independent and any fraud committed by them will not be discovered.
Warehouse team should not supervise the count. An independent person preferably an internal audit manager should supervise the count.
Ask for a sample of count sheet to check the signatureHowever please note sir in question nothing is mentioned about IA dept, so would IA manager be fine or not?
1) In point num 1 what would be the impact If the inventory which is not listed on the sheets is to be entered onto separate sheets which are not sequentially numbered
OK for a warehouse team to perform the count provided they are closely supervised. Generally, only the warehouse people know what the items in inventory are. A mixed team (1 from warehouse and one from accounts or IA) can work.
Well, it is surely obvious what might happen if inventory is listed on sheets that might not be accounted for. If a sheet gets lost, no one will know and inventory will be understated.
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