Beruflich Dokumente
Kultur Dokumente
A questionnaire that may be used in gathering information about prescribed controls over
manufacturing transactions is shown below:
Recording
1. Are standard costs used? If so, are they reviewed and revised
periodically?
2. Does the accounting manual give instructions for proper classification of
cost accounting transactions?
3. Are summary entries for direct materials and direct labor reviewed and
approved by the cost accounting supervisor?
4. Is there verification of correct application of overhead job cost sheets?
5. Is there segregation of functions between general accounting and cost
accounting?
6. Are there periodic reconciliations of work in process and finished goods
with subsidiary records?
Custody
1. Is work in process tagged during production?
2. Are finished goods stored in locked warehouses?
3. Are perpetual finished goods records periodically compared with goods
on hand?
III. TESTS OF CONTROLS: PRODUCTION TRANSACTIONS
Controls related to production transactions are important to auditors because they affect the
assertions embodied in the financial statements. Auditors perform one or more audit procedures to test the
assertions, including the following:
General Specific
DISCUSSION:
The following sections present the controls an entity should have, to ensure the propriety of each
assertion, and the tests an auditor might perform to determine the effectiveness of the controls on
production transactions.