Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

Stock count discrepancies indicates management control deficiency and significant impact on the auditors report >>>> true -- false

user-image
Question ajoutée par ahmed amin , Audit supervisor , KPMG
Date de publication: 2015/02/28
Carmen Cancela
par Carmen Cancela , Partner , C and R Consultants

Depends. Without provisions impact auditors opinion  subject to materiality amount.

Additionally discrepancies need explanation, throught the explanation it is possible to evaluate what type of management control deficiency needs to be fix and the real impact on financial statements.

Faisal Majeed - Chartered Accountant
par Faisal Majeed - Chartered Accountant , Regional Project Financial Controller , Barr + Wray FZE LLC & Barr + Wray (Hong Kong Limited)

If it forms major part of financial statements then yes it is true. but if the items are immaterial, these can be adjusted in profit and loss account and audit may give unmodified opinion.

Mohammad Ismail
par Mohammad Ismail , ACCA Trainee , Zarai Taraqiati Bank Limited

Yes it is True. Discrepancies in any of company controls systems will have an impact on the Auditors Report

Bakir Nawaz
par Bakir Nawaz , Internal Auditor , B Food Industries (pvt) Limited

it will make significat impact if the discrepanies are material

Khurram Shaukat Memon
par Khurram Shaukat Memon , Academic Research Writer , Freelance Academic Research Writer

Depends on materiality of the issue.

IMRAN ALI MOHAMMED
par IMRAN ALI MOHAMMED , Accounts Officer , M/s. Euro Glazing Ltd

I agree with Ms. Carmen Cancela. If provisions are provided it may not really effect the auditors report nor it shows management control deficiency. Especially in food and hotel industry there will be a lot of discrepancies in the stock due to the nature of some products which are perishable.

Shahbaz Hayder
par Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes stock count discrepancies show the control weaknesses.  

 

Whether these discrepancies will affect the auditors’ opinion or not will depend upon:

The Nature of the Stock

Value of the stock

Materiality of the amount

Nature of the default

Mohammed Mustafa
par Mohammed Mustafa , Senior Accountant , Tc Group Of Companies

It is absolutely True.Should be verified in stock on hand.It leads to closing stock on yearly finalization.

Muhammad Nadeem Khan
par Muhammad Nadeem Khan , Head Of Finance , Shaheen Services Pvt Ltd

Depend on the materiality of the inventory balance in books of accounts.

More Questions Like This