Today, our focus is on conducting CAATs tests for the company that we visited yesterday. Although the CAATs tests are similar to those performed for other companies, we learned from the client that we cannot perform a sales and purchase matching test because the company does not use its system for purchase and sales orders; these processes are handled manually.
In addition to the JV test, I am also performing an inventory costing test. To do so, I selected a representative sample of inventory items and applied different costing methods to them. The company will compare the results of each method to determine the most accurate reflection of the inventory's value.
After selecting a few samples of inventory items, I determined that the company is using the FIFO method. To conduct the inventory costing test, I checked the inventory purchased and issued out to ensure that the company was following the FIFO method. The test results were satisfactory as they showed no variance.
Main things that have learnt:
To learn how to perform inventory costing tests.
Comment/idea/opinion
N/A
Comentários