AUDIT PROGRAM FOR COST OF SALES

Index Reference ___________

Client Name: Grace Corporation__ Date of Audit: ____________

Staff In-Charge:

Audit In-Charge:

Year-End Audit Date:

AUDIT OBJECTIVES AND AUDIT ASSERTIONS

AUDIT OBJECTIVES AUDIT ASSERTIONS

Determine that all transactions related to cost Completeness
of sales have occurred for the period and
represent reductions from inventory in the
ordinary course of business.

To determine that all transactions relative to Occurrence

cost of sales have been recorded in the proper
accounting period.

To determine whether the cost of sales are Presentation

properly stated with respect to cost determined
by an acceptable method consistently applied
and slow – moving, excess, defective, and
obsolete items identified and reduced to
replacement cost or net realizable value if
lower than cost.

To determine whether disclosures concerning Disclosure

cost of sales are adequate and in accordance
 with PAS/PFRS and generally accepted
accounting principles.

Audit Procedures Done By Date Done Reviewed By

Confirm inventories in public
warehouse and with consignees.
Obtain a final inventory listing from
the client.
Trace test counts made during the
inventory observation into inventory
listing.
Test the clerical accuracy of the final
inventory listing
Obtain an analysis of the balance of
cost of goods sold from client and
reconcile with reductions in inventory
balances.
Review the year – end cutoff of
purchases and sales transactions.
Review entries to cost of goods sold.
Perform analytical review related to
cost of goods sold.
Evaluate the bases and methods of
inventory pricing.
Vouch and test inventory pricing.