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The production and inventory cycle - Coggle Diagram
The production and inventory cycle
Documents used
Job transfer(Goods received note)
Customer job card/ Inventory job card
Customer production order
Daily production report
Raw material issue slip
Completed producion report
Inventory production order
inventory master files
Inventory adjustment form
Inventory count sheet
Picking slip and delivery notes
Main components
Production process
Outputs
Inputs
Main functions
Production planning and design
Inventory management
production process
Control objectives
Completereness
Validity
Accuracy
Existance
Internal controls
Recording the movements of goods from production to sales
Making sure that inventory is kept in a safe place and is insured
Making sure that raw material is issued with the relevant document
Test of control
Inspection of supporting documents
Observe if procedures are followed
Checking if inventory is recorded and nothing is left out
Substantive procedures
Inspect the work in progress account
Inspect financial statements to chck if amounts are disclosed correctly
Weakness
Not issuing the correct documents
Lack of segregation of duties
Not checking the quality of inventry