(A Franchisee of Mang Inasal Philippines)

AUDIT REPORT IAD- 2021-000 July 7, 2021

FOR : MS. VICTORIA CZARINNA C. LIM - ACOSTA

FR : INTERNAL AUDIT DEPARTMENT

RE : INVENTORY DISCREPANCY OF MI CALASIAO – JULY 2021

An inventory audit of GRILL PRODUCTS, PROCESSED WET ITEMS AND BEVERAGES

was conducted at MI Magic Mall San Carlos on July 31, 2021. Results of our examination of available
records and documents pertaining to the inventory movement of the subject products covering the period
July 1-31, 2021 disclosed a net inventory income amounting to Php00.00. See below summary of
discrepancy:



PRO
Beg Inventory + Deliveries + Transfer In – Transfer Out – Wastages – Sales = Should be Bal.
End Inventory – Should be balance = Variance
Note: (Supporting Documents covering the same period).

Deliveries Based on Delivery Receipt (DR), verified in the billing summary of

FJS Accounting office.
Transfer in &Transfer out Based on Stock Transfer Form (STF).
Wastages Based on Damage Spoilage Form (DSF) attached with Employees
Report (ER) and Pictures of the wasted products.
Sales  Based on Product Sales Report
 Unvalidated Salary Deduction Form (SDF) charged at Unit
Cost

 Computation were based on Month End Inventory (MEI)

Count Sheet, sent by the FJS Accounting Office.

Price of the Unit Cost  Pangasinan Area, La Union, Ilocos and Isabela has
different Unit Cost.

 Update every month