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A firm may
conduct an audit of the firm’s inventory planning and monitoring
systems. Some of the possible areas to look out for are as
follows:
Description
Yes
No
Remarks
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ON INVENTORY LEVELS
1. Is too much money tied up in your inventory?
2. Do frequent shortages in inventory occur?
3. Does an excessive inventory discrepancy occur?
4. Is there are a lot of obsolete and/or non-moving items on
stock?
ON INVENTORY INFORMATION / POLICIES :
1.Does the company have realistic safety stock levels?
2. Does the company have realistic reorder point levels? |
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3. Does the company have realistic inventory lead times?
4. Are inventory control policies and procedures adequately
documented and communicated to all concerned departments?
INVENTORY MONITORING :
1. Are inventory records kept up- to-date for all materials?
2. Are inventory records regularly verified by actual count?
3. Are incoming and outgoing materials / goods properly checked,
authorized and logged in/out?
4. Are surplus and scrap items properly recorded and controlled? |
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