Required: Prepare an audit plan for the observation of the physical inventory count specific to ABC...

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Required: Prepare an audit plan for the observation of the physical inventory count specific to ABC Company. You learned that the company has inventory stored at outside locations and the company periodically places its goods on consignment. Use the attached schedule to record your answer.    You should be able to do this based on our classroom lecture and discussion. Suggest you should have 9 – 10 steps, at least.  
	
Document Preview: ABC COMPANYAUDIT PLAN FOR PHYSICAL INVENTORY OBSERVATIONAS OF JUNE 30, 2017					    		Performed by XXXXXXXXXXRef.

David · Accepted Answer

ABC COMPANY 
AUDIT PLAN FOR PHYSICAL INVENTORY OBSERVATION 
AS OF JUNE 30, 2017
Process Performed 
by 
Ref. 
1. Critical Inventory Noting: Note the details of nature and type of 
inventories held, locations of the inventory and warehouses, client 
supervisory staff in charge of the inventory, the materiality of 
inventory levels.
2. Cutoff analysis: Halting the further receiving of inventory at the 
warehouses so that the extraneous inventory can be excluded from 
the date physical count of inventory has begun.
3. Understanding physical count process of client: The team shall 
determine how physical inventory count is carried out by the client, 
and taking out lacuna in that process. Conveying the same to the in 
charge of count so that these can be fixed when actual physical count 
is done in front of auditor.
4. Observing physical count: After the above suggestions implemented, 
actual physical count should be observed and check should be kept 
that the said count is as per the standard suggested.
5.

Required: Prepare an audit plan for the observation of the physical inventory count specific to ABC Company. You learned that the company has inventory stored at outside locations and the company...

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