What are cycle counts?

joyce November 27, 2015

Certain features of the production cycle make it Inherently Risky. List 4 inherent risk factors

  1. What is NRV?
  2. What are the GAAP-Approved Inventory valuation methods?
  3. Physical Inventory
  4. What is a Physical Inventory (PI)?
  5. What is the Company’s objective for conducting a PI?
  6. What is the External Auditors role related to physical inventory observations
  7. Is it required by Auditing Standards (AU 331)
  8. What does the auditor do per paragraph 11 of AU 331?

iii. What information is generally document by the auditor during the PI observation?

  1. What are cycle counts?
  2. What is an inventory roll-forward?
  3. What are consignment goods? What are they a concern for Auditors? For which assertion?
  4. Why are slow moving or obsolete inventory items a concern to auditors? Which assertion?