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professor, one of the substantive procedures mentioned in “after the inventory count” is:
“trace items on count sheets obtained during the count into the inventory listing to ensure quantities have not been changed”
professor i don’t understand what is this inventory listing and when is it prepared?
If a company has relatively few product lines and only one inventory location, the quantities on the count sheets may be “priced up”/”costed” to give the inventory valuation. But many business – imagine a supermarket or a DIY store – will have 00s or more likely 000s of products and even if there is only one “store”, quantities of the same product may be in different places – on a promotional display – on a shelf in the retail space – on a shelf in the storage area waiting to be put out on a shelf – still on a pallet unloaded from a delivery waiting to be unpacked ….
So all the different quantities of the same product/item will be collated on one inventory listing. The inventory listing (of product names/references) might be extracted from a master file/register – then all the quantities counted are transferred to the listing. Then it is the total on the list for each product that will be priced up.
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