Following are audit procedures commonly performed in the inventory and warehousing cycle for a manufacturing company:
1. Account for a sequence of raw material requisitions and examine each requisition for an authorized approval.
2. Trace the recorded additions on the finished goods perpetual inventory master file to the records for completed production.
3. Compare the client’s count of physical inventory at an interim date with the perpet-
ual inventory master file.
4. Use audit software to compute inventory turnover by major product line and com-
pare it to turnover in the prior year.
5. Read the client’s physical inventory instructions and observe whether they are being
followed by those responsible for counting the inventory.