W.P. NO.

Prepared By:
Reviewed By:
Lakeside Company
Test of Inventory Listing Warehouse
December 31, 1991

INVENTORY
ITEMS

TAG
NO.

SERIAL NO.

QUANTITY

Amplifiers

116

BC 76-W

22

Component
Systems

124

JB 45-H

69

Radios

102

CB 21-S

80

Stereo Systems

138

FU 87-R

60

Amplifiers

130

KZ 54-T

88

Speakers

150

YG 28-Y

71

Stereo Systems

127

RA 69-M

99

Turntables

142

RW 21-X

49

Receivers

113

NB 73-Y

112

Stereo Systems

126

JH 88-A

77

Tape Decks

104

CZ 55-H

46

Speakers

137

BF 23-G

84

Head Phones

147

PO 88-Q

49

Turntables

132

CD 00-N

121

AUDIT
PROCEDURES

Audit Objectives:

To verify that the physical count observed agrees with the inventory listing.
To verify that the inventory listing provides a fairly presented inventory cost
balance.

Scope:
Items that were selected during the inventory observation.
Audit Procedures:

W.P. NO.
Prepared By:
Reviewed By:
Traced items to inventory listing noting agreement as to description and
quantity. All items agreed, and nothing is in disagreement.
o Traced items from inventory listing to master price as to description. All items
agreed.
Audit Conclusion:
The inventory listing is fairly stated.

Lakeside Company
Test of Inventory Counts Warehouse
December 31, 1991

W.P. NO.
Prepared By:
Reviewed By:
I.

Receiving Reports (January 1 2, 1992)

Receivin
g Report
No.

1/1/9
2
1/2/9
2

Component
System
Head
Phones
Compact
Disk Player

3988

3989

Serial
No.
JB 45H
KJ 32K
RX
04-L

Quant
ity
20
40
10

Unit
Cost

Total
Cost

481.
75
32

9637.4

285.
99

2859.9

1280

13,
777.30

Total

II.

Audit
Procedures

O
K

Bills of Lading (January 1 2, 1992)

1/1/92
1/1/92
1/2/92
1/2/92

Amplifiers
Compone
nt System
Stereo
Systems
Stereo
Systems

Shippe
d to

B.L.
#

Seria
l No.

Custom
er
Custom
er
Custom
er
Custom
er
Custom
er

601
5
601
5
601
6
601
6
601
6

XY
76-R
BM
09-H
AB
15-M
JH
88-A
CS
33-P

Quant
ity
20
10
20
12

1/2/92

Receivers

10

1/2/92

Compone
nt
Systems

Custom
er

601
6

AR
65-C

1/2/92

Speakers

Store 1

601
7

BF
23-G

Unit
Cost

Total
Cost

219.9
5
812.3
5
256.9
8
324

4399

Audit
Procedur
es

8123.5
5139.6
3888

698.9
8
1319

6959.8
0
7914

469

3752
40,
205. 9

O
K

Audit Objectives:
To verify the reconciling items to the inventory list are valid and reasonable.
Scope:
All reconciling items to the inventory listing.

W.P. NO.
Prepared By:
Reviewed By:
Audit Procedures:
Traced receiving reports from the files of company. All are available and
nothing is in disagreement.
o Compared the item with its price on the Master Price List. All Agreed.
Checked the mathematical accuracy of the price of each item. No
misstatements identified.
Rechecked the extensions and footings of amounts. All are in agreement with
the totals in the reconciling items in the inventory listing.
Other Procedures:

The tagging system has been properly followed by the team members of the
client.
All tags are pre-numbered and the last tag is numbered 152. All tags were
pulled and accounted for.

Audit Conclusions:
The reconciling items presented in the inventory listing are fairly stated.