To ensure the physical existence of office supplies, their ownership by the company, that balances are recorded completely, and the accuracy of recorded values. This involves observing physical inventory counts, inspecting storage security, confirming supplies at off-site locations, verifying prices from invoices, and inspecting supplies for durability to identify obsolete items. Risks include misappropriation, suppliers failing to deliver correct items, errors in calculations, and obsolete supplies still recorded as assets.
To ensure the physical existence of office supplies, their ownership by the company, that balances are recorded completely, and the accuracy of recorded values. This involves observing physical inventory counts, inspecting storage security, confirming supplies at off-site locations, verifying prices from invoices, and inspecting supplies for durability to identify obsolete items. Risks include misappropriation, suppliers failing to deliver correct items, errors in calculations, and obsolete supplies still recorded as assets.
To ensure the physical existence of office supplies, their ownership by the company, that balances are recorded completely, and the accuracy of recorded values. This involves observing physical inventory counts, inspecting storage security, confirming supplies at off-site locations, verifying prices from invoices, and inspecting supplies for durability to identify obsolete items. Risks include misappropriation, suppliers failing to deliver correct items, errors in calculations, and obsolete supplies still recorded as assets.
1. EXISTENCE To ensure the physical existence Susceptibility of the account to be Observe the counting of physical inventory of office supplies misappropriated. Inspection of storage security Lost units because of unsecured storage 2. RIGHTS AND To validate that all office supplies Supplier failed to deliver what is rightful Confirmation of office supplies at locations outside the OBLIGATIONS are in the ownership of the to the company. entity; 3rd party company. 3. COMPLETENESS To verify office supplies balances Human error in calculations Verify the price of inventory by inspecting invoices for are recorded completely in the purchased office supplies journal or books. 4. VALUATION AND To check the accuracy of the Obsolete supplies should be expensed Inspection of durability of the office supplies ALLOCATION values recorded in the journal or but are still recorded as assets. Can only books be determined after use.