What

general

Remarks
recorded?
ensures

Completeness
ledger?

675954008.xls
the proper period?
the proper period?

sales takes place?

identified/recorded?
X-reference IKCT

Rights & Obligations

inventory transactions.

Existence/ Occurrence
are properly allocated?

Valuation/ Measurement
quantities and amounts?

Presentation & Disclosure

transactions are recorded?

company at a point in time?

transactions are not recorded?
White
Yellow

Example "What Can Go Wrong" Questions

properly applied, updated and computed?

What ensures that only authorized inventory

work-in-progress to finished goods) is properly

What ensures that the inventory pertains to the

What ensures excess and obsolete inventory is

What ensures that an item is properly classified,

What ensures that fictitious or duplicate inventory
What ensures that cost of sales are recorded at an
What ensures that cost of sales are recorded when
What ensures that there are no unrecorded costs or

What ensures that perpetual records properly reflect

What ensures that inventory subledgers agree to the

described, and disclosed in the financial statements?

that production activity (raw materials to
What ensures that customer shipments are recorded in

What ensures that the method for inventory valuation is

What ensures that purchase/product variances, if used,

appropriate amount and that the expense is allocated to

IM 12
IM 10
IM 08
IM 06
IM 04
IM 02

IM 13
IM 11
IM 09
IM 07
IM 05
IM 03
IM 01
= Key control
= Other control

Assertion

Existence

Disclosure
Occurrence
Occurrence
Valuation or
Valuation or
Valuation or
Valuation or
Valuation or

Existence or
Existence or
Measurment,

Measurement
Measurement
Measurement
Measurement
Completeness

Completeness
Completeness
Completeness
Completeness

Completeness,

Presentation and

IM 14 Rights and Obligations

X
D
Ch

CIM

N/A
01.01
cri ang
tica es
l in to t
f or he
ma inv
Po tio en
ac iciesl n i t or
c

X
P
sr ym
ev

N/A
CIM
inc ord and
02.01
lud anc p iew aste
ed r fi
es e w roc
rev ith edu . le
are
COMPANY A - Manage Inventory and Manufacturing - Internal Key Control Template (IKCT)

isin th res log

ga eS in ge
nd KF reg da
Pro rev Gro ard nd

X
X
P
iew up to ch
s

N/A
CIM

am ced ing P an
02.02
Key Controls (P-Prevent; D-Detect)

co oun ures a olic tan ge

so
rre ts e ss ies dar
u d f
ctly are xis
t mp a n
d c o
ca inc to e tio s
lcu lud ns ns Inst t ca
Sa l a e u f o r
ruc lcu
ted d in re

X
X
X
D
D
D
D
D
D

rev les, sta tion latio

n

N/A
CIM

iew cos an the that nd s.

02.03

da a ard Th are
ed t of
,a pp over ppro s a is in
nd sale lie he pr
d nn
co s a . ad iat
e ua
mp nd p oo ove lly.
All are ro g ls,
an rhea

X
X
X
P
P
d t ss

N/A
ma new do da
CIM

o b ma
02.04

co inta stan u d rg ve cc
mp ine d ge ins rhe ou
are d a r t /fo r b ad nts
d t for in d uni ec ased rat and
o p ve t c as o es
ta nI are
Pe rio nto ost
s n P
=GAP

ry

X
X
D
D
D
D

d p pr
r ic
CIM

N/A
a m rpet ea ry co in t ior
s he es
03.01

by ont ual in ra t p
nd ing "fr
an hly ve a re pur zen o eri are
o ds
au ba nto .
=covered risks

tho sis ry the po " s

riz an rec rea ses tan
=existing controls

All ed d s or fte , ar dar

m

X
X
X
P
P
P

pe uc ds a ra er dc
in

N/A
pp ev
CIM

an rso h r
03.02

rev proc ual n. eco re re rov iew ost f

ed ed ile,
iew ess ent nc con
ilia cil . an
ed , go ries tio ed d
an od to ns to
d a s i the a re he t

X
X
X
D
D
D
D
D

Re
c pp n tr i n r g
CIM

N/A
pe onc ro v a n v e e
rfo e s
d b it, r tory n vie ene
we ral
=planned controls to be implemented

rm iliatio
ed ns y a e-v a d a led
nd ge
(in of n a alu cco
ap r o

X
X
X
P
P
P
P

Ac clu in uth atio unt

CIM

N/A pro n
din ven ori ns, s, e
03.03 04.01

pro ontr ze ve
du ol i g c tor
on y d co .g. d
ctio s in s ign re s t o pe rrec calc
rso tio ula
ni
s c place ed d a n. ns
Th ou w in t o etc tion o

X
X
X
D
D
D
D

ve
CIM

nte hic ,a fw
N/A

su e ph nto utsid re
04.02

da he ry) e lo o rk
go ppor ysica
od tin nd ns .
ret ure ca
s t g w l num
of u r ne ha s t
tio
n
d sa
Add risk 7 inis ork o ber
t o ma t r e
Th he rde of m
dg ri sto te
X
D

Remove Risk 2,5,9,12 go e rec ck. rial

N/A

oo n c anuf
CIM

od ds on ac no
04.03

Central Correction s i orde . ne tur tu

s
sa d
na val c tio d p e ed
lyz ue nt in
ed of o t rodu
an ma ra n ct s
X
P
P

Th
e d c nu sfe ar
e
CIM

N/A

r r
04.04

an mo
d a de om fac of
pa tur ma econ
pp l u red ed nu cil
rov se to prod fac ed
ed d fo
. tur to
X
P
P

Inp r the uc ed
N/A

va
CIM

co ut d lua sta ts r
mp ata
let ti on
nd epo
a rd rtd
en for t
es he o fW c os nto i
All s. tv
X
X
X
P
P
P
P

sc va ork alu finis

N/A

rap lua
tio in e. hed
pe nm Pro
dm ce
od ss
ate
ria e lm mu
s
X
P

Ph lh us tb
N/A
CIM CIM

or ysica as tb er
go to ev ev
od l saf be eri iew
s t eg ap fie ed
Risk 11 ha ua p d for
X
X
X
P
P

Ma t a rds ro v
r e a
N/A
CIM

Central Correction Add au inta e e ex db

04.05 04.06 05.01 05.02

ccu
tho na s pe t fo is ya ra c
riz nce cia n au y an
ed lly r inv tho d
pe of wr lia ent
All rso itte ble or riz
ed
X
X
D
D

n. ni to y, p
n b a
CIM

N/A

an inve v e r pe
05.03

en rso
co d off ntor
un -si y, t ory
sto ticu
len larl n .
ted te inc co . yh
an inve ludi un igh
d r nto ng t in -co
ec str st
Bo on ry (o raw
cile ut ma
uc
tio g oo
ac ok-to ns ds

Version: 1.1
d t side ter
ia is
X
X
P
P

rec tions -ph ot

CIM

N/A

he proc l, co ma
05.04

ap orde are ysica g e e s m de

p ro d t l ne sin pon by
va in t aken diffe ral g a en an
l is he t r led nd ts,
ob G/ o co ence ge co fin
tai L a rre s a r. ns i s h
ne nd ct ign e
df t re me d go
X
X
X

or in th he c revie
D
D

Re
Centrally Suggested Key Controls

w nt) ods
CIM

N/A

all e p au is ,
inc ceiv ad er se. ed
lud ing
ing an
jus pe
tm tua ce ro N e
for
int d e l
nts inv sa t ca s o
er- ship . e r
X
P

Pro nto y a use

CIM

N/A

pla pin
ac ced g
05.05 06.01

co ur nt ry djus s a
rda es an are rec tm nd
di ord en
nc exi ntr cont s, ts a
e w st a-p roll p ro re
Th ith to e lan ed pe
e G n t d r
X
P

s m u
N/A
CIM

wit va AA ur
h lu P e ov ring
06.02

an FI ati
d a FO on . tha em
e ph
t th nt s ysic
pp or mo
rov th de e inv . al
ed e M l fo en co
Risk 1 un
t,
X
X
P
P

Inv by o v r i n tor
CIM

N/A

Central Correction Add an ing ven yv

06.03

ap ento alu
p ro ry au Av tor ati
ve i s v
d.
tho era y e
riz ge ns o nm
alu
ed e d p Me res u eth
Remove Risk 13 Ac at ers tho od
X
X
X
D
D

the is
CIM

N/A

Central Correction bu tual on d. T valua

. in
06.04

inv dget prod low he tion

er mo in
es /for uct
tig e io of
co d e a c
ate cas n c s l is co
d a t a ost t an re v a rd
Remove Risk 13 Pr nd nd p s a dN iew nce
ed
X
D

res rio re r RV
CIM

N/A

Central Correction ma oced olv r p evie an

06.05

co de d ures ed erio w
. d
st ds ed, the
ca ue to exis . S an an
lcu t ign d aly
lat diffe to e ific com sis
ion re ns an is
Inp . nc ure t d pare
P
P

ei
n iffe d t
N/A

tha
CIM

co ut d
06.06

ca t a ren o
pe mple ata f pa dju
c ce
rso te or ity s s are
n. nes the uti tmen
s a in liza ts
Risk 1 nd ven tio on
X
X
P
P

Pr inv tor n c inv

CIM

N/A

Central Correction Add rev ovisi en y v

tor alu o mp nto e
iew ons y v at i are ry
ed for alu on d t val
Risk 1 an ob ati is v o s ue
e
X
X
P
P

Th d a so on
e p le r i
tan is
CIM

N/A

Central Correction Add pro te, is a fie da

d
07.01 07.02

Gr mo p rd
ou ve slo pro for
p A del u d. wm ve acc
cco sed ov d b ur
Pro un f o ing y a c
tin r o , lo an y a
X
X
P
P

ph ced g P bs st au nd
CIM

N/A

ysi ure or tho

07.03

ca rin oles
lly s ex cip ce da riz
les nc ma ed
se ist an e g ed
gre to
ga ens d Ins n a
is i
inv
Ad c e
X
X
X
P
P
P

ted ur tru co
eq e c nto
CIM

N/A

a tio da r ry
08.01

ua nd tha
te no t da ns nd are
se n-s m ew
gre ale age ith
ga ab d g the
All tio le SK
no
e.g non go ood F
X
X
X
P
P
P

fd od s a
CIM

N/A

ac . sig -rout uti s a re

08.02

co es re ide
rda nifica ine b
nc nt usin
is m s c rap ifie n t
e w inv ain d
tai pe
ith ent ess t ne d. ,
the ory ran d.
IT Gr dis sac
X
X
X
P
P
P

ou cre tio
N/A
CIM

ma cont p J pa ns
09.01

ke rols oin nc are

ch t S ies
an ensu ign , m appr
ge atu an ove
X
X
P
P
P

Ap s t re th res ual d b
N/A

o c at
CIM

are plica riti onl Po pos y tw

co tion ca y a licy tin
mp co l fu u
n t h . gs o pe
etc rso
let ntr cti ori
X
P

Ed e a ol on ze , i ns
n ,
it n s a d
N/A

e l i
CIM

an ch d h ns ty per
a
d c ec a ve re u nd on s
he ks i nte ha t d n
cke ens
g t ata el h
. av
X
P

Ap d f ure rit y tran

or .
N/A

sf e ea
is u plica rea that ro cc
se tion so all fd es
d. na re st
Remove Risk 13 co
ntr b len ir q u
ata o
be
X
X
P
P
P

Ap ols es ed t we
N/A

Central Correction en s. da e
sa plica su ta ns
le. tio
nc re i s en ys
on th a ter t em
Ap t ro t th ed s
X
X
P
P
P

plic ea
N/A

ls e i nt
atio ns cu ot
nc u re r ate h es
on th a ca y st
tro tc lcu em
X
X
D
D
D

Pr ls p os lat
N/A

to ed
CIM CIM CIM CIM

sys oced rev fs co

tem ure en
t a l es s t
sd of
are s ex up is r sa
Ch lica ec les
X
P

an an ist to
te ord
N/A

aly
CIM

ge ed
09.02 09.03 09.04 09.05 09.06 09.07 09.08

ze ens inv
st
oc d u e nto f or
riti
an re t
d r ha ry e ac
ca
ld es t e t ra h
olv rro ns
at a ed r re ac
are on po tio
log a r t ns
.
ge tim s ge
da ely ne
nd ba rate
sis d
rev
iew . by
the
ed
.
Print Date:06/29/2023