Over this past year, it has been determined there may be some control issues in each of the major transaction cycles. Here is a chart of each cycle with the areas of concern identified. Transaction Cycle: The accounting for inventory Area of concern: There are 6,000 inventory SKUs totaling $28 million with only 1,000 SKUs cycle inventoried this year; 114,000 inventory transactions may not have issues and receipt matched. To the right of the transaction-related audit objective are the three column headings for each objective. For example, objective for accounting for inventory - Existence - In regards to Key Internal Controls, Common Tests of Controls, and Common Substantive Tests of Transactions. Same way for each objective.

Transaction Cycle Name: Accounting for Inventory Student Name: Transaction-Related Audit Objective Key Internal Controls Common Tests of Controls Existence Completeness Accuracy Classification Timing Posting and Summarization References: Need at least two references Group Number: 1 Common Substantive Tests of Transactions