Page 93 - Auditinf Electronic System

5. There are several acceptable inventory valuation methods and some

organizations may prefer to use different valuation methods for different parts of

the inventory, which is acceptable under accounting standards (FIFO- W.A)

6. It is connected to different other cycles: The audit of the inventory and

warehousing cycle can be divided into five activities within the cycle:
❖ Acquire and record raw materials, labor, and overhead
❖ Internally transfer assets and costs
❖ Ship goods and record revenue and costs
❖ Physically observe inventory
❖ Price and compile inventory

classes of transactions Inventory and warehouse cycles

The inventory and warehousing cycle can be thought of as comprising two
separate but closely related systems, one involving the physical flow of goods and
the other the related costs. Six functions make up the inventory and warehousing
cycle.

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‫جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية‬