Physical Inventory Observation Checklist
PHYSICAL INVENTORY OBSERVATION CHECKLIST
Name of Company
Subsidiary or Division
Location or Department
Date(s) of Inventory Taking
Date(s) of Observation
Firm's Representative(s)
Company representative in charge of inventory (or department)
The purposes of the physical inventory observation are to determine that (1) the inventory physically exists, (2) stated quantities fairly represent the actual quantities on hand at the date of the observation, and (3) the inventory is in a usable and saleable condition (e.g., not damaged or obsolete).
Instructions
This checklist covers information obtained and audit techniques usually employed during a physical inventory observation, including tests of perpetual inventory records. The checklist is not an exhaustive list of considerations for all observations. It is supplemented by additional procedures whenever appropriate.
Some questions may be inappropriate for some observations. Questions that do not apply should be designated N/A (not applicable). A “no” answer is explained in the margin or in an attachment referenced to the related question.
A checklist is prepared by each FRSH representative responsible for a location or department and is completed before leaving the inventory location. This checklist can be used in lieu of a physical inventory observation memorandum.
General Description of Inventory (indicate those that apply)
Types of Inventory:
Raw materials
WIP
Finished goods
Other
Special Categories of Inventory (obtain particulars for audit follow-up):
In-plant— goods billed not shipped
goods received not billed
inventory held for others
consignments in
Off-plant— goods at outside location
goods in transit to customers or from vendors
consignments out
Special Classes of Inventory:
Obsolete
Excess supply
Damaged
Overruns
Engineering models
Special order
Give particulars for any classes
Name of Company
Subsidiary or Division
Location or Department
Date(s) of Inventory Taking
Date(s) of Observation
Firm's Representative(s)
Company representative in charge of inventory (or department)
The purposes of the physical inventory observation are to determine that (1) the inventory physically exists, (2) stated quantities fairly represent the actual quantities on hand at the date of the observation, and (3) the inventory is in a usable and saleable condition (e.g., not damaged or obsolete).
Instructions
This checklist covers information obtained and audit techniques usually employed during a physical inventory observation, including tests of perpetual inventory records. The checklist is not an exhaustive list of considerations for all observations. It is supplemented by additional procedures whenever appropriate.
Some questions may be inappropriate for some observations. Questions that do not apply should be designated N/A (not applicable). A “no” answer is explained in the margin or in an attachment referenced to the related question.
A checklist is prepared by each FRSH representative responsible for a location or department and is completed before leaving the inventory location. This checklist can be used in lieu of a physical inventory observation memorandum.
General Description of Inventory (indicate those that apply)
Types of Inventory:
Raw materials
WIP
Finished goods
Other
Special Categories of Inventory (obtain particulars for audit follow-up):
In-plant— goods billed not shipped
goods received not billed
inventory held for others
consignments in
Off-plant— goods at outside location
goods in transit to customers or from vendors
consignments out
Special Classes of Inventory:
Obsolete
Excess supply
Damaged
Overruns
Engineering models
Special order
Give particulars for any classes