Inventory preparation

1. Determine the property that needs to be inventoried and seal it. There are many types of property in the units under inspection, and a comprehensive inventory is impossible and unnecessary. Therefore, the key points that need to be inventoried should be determined based on the audit objectives and the specific circumstances of the items to be reviewed.

2. Investigate and understand the system for receiving, receiving and storing property, and evaluate the performance of the control functions of each system to identify weak links in control and clarify key points.

3. Determine the personnel to participate in the inventory. Among the inventory members, there must be at least two auditors, a financial person in charge and a physical custodian. At the same time, there should also be necessary staff.

4. The accounts should be kept on the closing day, that is, through review, review, and verification, errors in accounting records and calculations should be eliminated.

5. Prepare recording forms and check measuring instruments. Measuring instruments used for inventory must be inspected to prevent fraud and distortion of the inventory results.

6. Choose an appropriate inventory time. The time for inventory is generally selected so that it does not affect the normal progress of work. It should be chosen after the end of each day's business or before the start of business.