COSO Internal Control Framework -C2 Control Activities -Inventory
COSO - Integrated Internal Control Framework
COSO CONTROL COMPONENT: CONTROL ACTIVITIES
COSO CONTROL OBJECTIVE: OPERATIONS - Intangibles Assets.
COSO ORGANIZATION LEVEL OF RESPONSIBILITY: BUSINESS UNITS AND ACTIVITY LEVEL
Following are the best practices or general control activities which may be implemented as is or these can be used to develop/ prepare organization specific control activities, policies and procedures. Procedural manuals may also be available at AuditNet.com and you may access/ download the templates subject to your membership subscription.
1) To meet the demands of sales and production adequate and appropriate inventories are held.
2) All Inventory movements are valid and accurately recorded.
3) All Inventory records are accurate, valid and that inventory discrepancies are promptly identified and resolved.
4) All Inventory is adequately and appropriately stored and secured.
5) All Inventory write-offs, scrap, and other disposals are accurately recorded and valid.
6) Inventory levels are monitored to detect and react replenishment requirements, obsolete and slow-moving items.
7) All inventory on-hand is traceable to a known storage location and that management is provided with accurate and timely information on inventory levels and usage.
8) Appropriate liaison between the inventory control function and other relevant activities (i.e. sales and production) exist for achievement of the organization's objectives.
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