CASEWARE IDEA SOFTWARE

Auditing Procedures

Extent of Testing

Summary of findings

Import Inventory Supplies and Location file and Comm Supplies Inv and Sales file.  The Inventory Warehouse Location file can help you with identifying where supplies are located for interpreting your results of where identified obsolete items are stored. Identify parts that are obsolete. The definition of obsolescence is: Inventory with a turnover of less than 3 times a year, or no sales in the last 6 months

 This will be tested using the following steps:

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a. Summarize the Inventory Supplies and Location file by ITEMNUM. Indicate that the summarization should be on inventory quantity and inventory cost. Call the report "Comm Supp Inv Sum by Item."

b. Summarize the Comm Supplies Inv and Sales file by ITEMNUM. Indicate that the QTYSOLD is the field to total. Call the report "Comm Supp Sales Sum by Item."

c. Select the Comm Supp Inv Sum by Item and perform a join databases with the Comm Supp Sales Sum by Item file. The match key should be ITEMNUM and the join option should be "all records in primary file." Name the result "Inv with Sales."

d. Perform a field manipulation on the Inv with Sales file, appending a field called "TURNRATE," a virtual numeric field with one decimal calculated as "QTSOLD_SUM/ INV_QTY_SUM." Report your findings.

e. Make sure the Comm Supp Inv and Sales file is the active file. Identify the last date of sale to identify obsolete inventory items (see definition above) by performing a data extraction of the "Top Records". (Data/Extraction/Top Records Extraction). The TOP RECORDS FOR is “INVDATE” and GROUP is “ITEMNUM/A” (ascending). Name resulting file “Last Sales Date.”

f. Join Inv with Sales and Last Sales Date files. Match on ITEMNUM and join "All records in primary file." Name the result "Inv turn with last sales date."

g. Under the Field Manipulation function, rename the INV_DATE field "LAST INV_DATE" and the QTY_SOLD field to "LAST_SALE_QTY."_

h. Extract obsolete inventory by setting the criteria as "TURN_RATE < 3.0 .OR. LAST_INV_DATE < “20050701””.

Report your findings in a memo to the file

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