• Attending the annual stock take (if one is carried out) and observing the client's cut-off
procedures such as noting the numbers of the last stock movement documents raised.
Also checking that there is limited movement of stocks at the period end to minimise
double counting or omissions.
• Selecting goods received notes raised shortly before the period end and up to the period
end and matching them with related supplier invoices and ensuring that a liability is also
recorded by the period end.
• Selecting goods received notes raised after the year end and ensuring that the related
supplier invoices have not been recorded as liabilities at the period end.
• Selecting goods despatch notes issued just before the year end and ensuring that the
goods actually left the premises and the corresponding invoice has been recorded as a
sale for the period.
• Selecting goods despatch notes raised after the year end and ensuring that the invoices
have not been included in sales as at the year end.
• Check the last return inwards and outwards records.
• Check the records of inventory held by third parties/held in transit
• Seek confirmation from the management if cut-off procedures are complied with.
Kavungya answered the question on May 14, 2019 at 13:01
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