Templates
Internal Audit
CPA Auditing the Inventory Management Process
CPA Auditing the Inventory Management Process
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CPA Auditing the Inventory Management Process

Explore our CPA auditing workflow focused on examining an organization's inventory management process, ensuring accuracy, efficiency, and compliance.
1
Review the client's inventory management process documentation
2
Identify key personnel involved in inventory management
3
Communicate with management on the scope and objectives of the audit
4
Review previous audit reports if available
5
Approval: Previous Audit Reports
6
Perform a risk assessment of the inventory management function
7
Develop an audit plan and timeline
8
Analyze transactions related to inventory
9
Inspect warehouse facilities and mode of storage
10
Audit inventory count procedure
11
Assess internal controls over the inventory management process
12
Approval: Risk Assessment
13
Perform a physical count of inventory items
14
Verify inventory valuation methods
15
Approve inventory quantities in the financial system
16
Approval: Holiday Inventory Quantities
17
Test inventory turnover rates
18
Discussions with management about audit findings
19
Prepare draft audit report
20
Approval: Draft Audit Report
21
Issue final audit report