COSTING HEAD OFFICE AUDIT PROGRAM
FUNCTION: FINISHED GOODS
CONTROL OBJECTIVE
RELEVANT CONTROLS
TEST OF CONTROL
WP
REF
REPORT
ITEM
Information:-
• Accurate
• Complete - i.e. all of it is there
• Valid - i.e. all that is there should be there
• Timeously available
• Timeously reported
• Confidential
1. At month-end, the raw and packing costs are confirmed for
each factory and the final roll-up is done and the finished
product costs are transmitted to Head Office via the system.
2. These costs are updated onto the National Stocks system.
3. The following reports are processed and printed:
INR715/01 Consolidated Stock Adjustment Analysis
INR742/01 Consolidated Stock Report
INR744/01 Consolidated Stock Report by Factory
INR726/01 Stock Report by Depot
INR718/01 Monthly Intransit Listing
INR736 Summary of Finished Goods Variances
INR741/01 Purchased Product Report
INR726/01 Dummy Stock Rooms Report
4. The Stock Adjustment Analysis report comprises of all
FPSIs and FPSRs processed for the month by the respective
depots. The FPSI and FPSR have pre-printed reason codes
and are captured accordingly in the system. These are
summarized on the report and are analyzed before a journal
is raised and processed on to the JBA system.
5. The Summary Finished Goods Variances report is extracted
from the Consolidated Stock Report. This is journalized on
the General Ledger to the various depot variance accounts.
6. The Purchased Product Report lists the purchases of finished
goods for the month. Goods Inward Advice is received
from the depots and are matched to the invoices. These
invoices are authorized and forwarded to the Creditors
Department for payment. Unmatched items on the
Purchased Product Report are accrued and matched the
following month