The 21st Minute

Inventory and Stock

CaseWare IDEA Applications

Inventory and stock can vary in volume and cost within organizations.

Analyses

• Reconcile physical counts to computed amounts
• Analyze usage and ordering to improve turnover
• Analyze high value transactions
• Summarize and stratify turnover by stock item
• Summarize stock on-hand by group, location, type, etc.
• Create custom reports on stock and high value balances
• Review product reordering volumes by item, warehouse, and vendor
• Summarize products by group, location, type, etc.
• Summarize and stratify turnover by stock item in any order
• Age inventory (e.g. by date of receipt)

Calculations

• Report on products in order of profitability
• Statistically analyze usage and ordering to improve turnover
• Test clerical accuracy of totals and extensions
• Check product reordering volume by item, warehouse, and vendor
• Determine the percentage change in sales, price and/or cost levels by product/vendor
• Assess the financial viability of LIFO versus FIFO management

Exception Tests

• Identify surplus obsolete/damaged inventory by sorted turnover analysis
• Identify differences between standard costs and actual costs
• Identify stock acquired from group companies
• Segregate variances from standard pricing in amount order
• Isolate stock lines/products with cost greater than retail price, with zero/negative quantities,or with zero/negative prices
• Isolate items where stock exceeds maximum stock levels
• Select items from perpetual stock for test reconciliation

Gaps and Duplicates

• Test for duplicate parts, item numbers, prices or descriptions

Matching and Comparing

• Compare yearly volume with on-hand quantity for stock items
• Compare cost to retail price to look for pricing discrepancies
• Compare the value of physical counts to General Ledger value

Sampling

• Monetary Unit or Random samples for physical verification or checking additions