Exercise 1 - jb nagar cpe study circle of wirc of icai

Audit ChecklistSample 4 BSubstantive Testing at Balance Sheet Date _ InventoryS.r. No. Particulars E R O C V M PD WP Reference /Commnets1 Is the inventory valued at lower of cost and netrealisable valuey y y2 Which is the cost formula used ? y y ya. Specific identification?b. FIFO?c. Weighted Average?Is the disclosure made to that effect inaccounting policy?y3 Have you ascertained whether cost includes y y ya. Cost of purchase (net of Modvatableduties)?b. Direct labour?c. Production over heads?d. Such other direct cost to bring inventory totheir present location and condition?4 Have you ascertained that cost of conversiondoes not include the following :y y ya. Interest, (Unless permitted by AS 16)?b. Administrative overheads?c. Selling and distribution cost?d. Abnormal wastage of material, labour andother production cost?5 Standard cost method is reviewedperiodically?y y y27 Rakesh Agarwal