Here is an example of Inventory:
Key risk: Existence, Completeness, Valuation
- Existence: To ensure this assertion risk is addressed on the CFE-Select a sample from inventory listing(sheet) to floor
- Completeness: To ensure this assertion risk is addressed on the CFE- Select a sample from floor to the listing (sheet)
- Valuation: To ensure that this assertion risk is addressed on the CFE- Select most recent invoices and look at the market values/selling prices that it can be sold at and check for product expiry dates. Compare with actual costs on the Balance Sheet.
- Roll back: This is applicable if/when you miss the count by a month or so in a CFE case, you will need to discuss scope limitations –you need to address any additions/deletions, Do NOT just write rollback, give specific procedures to conduct this and keep in mind- The marker is “stupid” so you need to provide detail and support for everything.
- Additions: vouch to invoice
- Deletions: support it with shipping log, go from shipping log
