Question

how do you determine when to select the Check window and when to select Make a payment on the vendor’s page? Advice on some of the transactions that you have been processing throughout this chapter. Has the process been working smoothly or have there been issues? Explain. What is an inventory audit? What benefits does an inventory audit provide?

Answer 1

Inventory audit is an analytical procedure that cross-checks if financial records match inventory records, or the count of physical goods.

Benefits of inventory audit:

• Records exact physical level of inventory.
• Helps to find out inventory losses caused due to wastage, damage or theft.
• Reveals outdated raw materials and incorrect orders supplied to customers
• Compare the actual quantity of stock against that noted on the accounting records
• Avoid unnecessary investment on raw materials and can help to save money
• Helps to find out discrepancies in the packaging and warehouse procedures