Explain the auditing procedure called cycle counting. [10 marks]

Cycle counting of inventory in auditing procedure can be explained as follows:

1. Items and frequency of counting of inventory - explain - give example

2. Comparison with traditional physical count - explain - give example

3. Types of test i. Sheet to floor - explain ii. Floor to sheet - explain

4. Benefits of cycle counting:- i. Less disruptive - explain ii. Cost reduction - explain

5. High degree of inventory - explain - give example

in paragraph