- physical inventory
- 1. Audit procedures devised to obtain evidence of the existence, condition, and physical quantities of inventory. The counting of inventory quantities is normally performed on a sample basis, especially when the volume of inventory makes a full count unfeasible. The results of sample counting may be extrapolated to the entire inventory *population, provided that *compliance testing suggests the satisfactory operation of relevant *internal controls. Physical inventory tests may range from counts performed annually to periodic (or *continuous) verifications of the accuracy of *perpetual inventory data, or a combination of the two. Obtaining evidence of the accuracy of inventory balances stated in financial statements has been of immense importance to auditors since the *great salad oil swindle of the early 1960s. 2. Audit procedures devised to obtain evidence of the existence, condition, and physical quantities of *property, plant, and equipment.
Auditor's dictionary. 2014.
Look at other dictionaries:
Physical inventory — is a process where a business physically counts its entire inventory. A physical inventory may be mandated by financial accounting rules or the tax regulations to place an accurate value on the inventory, or the business may need to count… … Wikipedia
physical inventory — noun : an actual count of all stock or equipment or both of a manufacturing or mercantile concern distinguished from book inventory * * * physical inventory, an inventory made by a count of stock or equipment instead of by checking books of… … Useful english dictionary
physical inventory — physical stock check The process of counting the physical balance of stock items at a particular time with a view to carrying out a stocktaking under a system of either inventory control or continuous stocktaking … Accounting dictionary
physical inventory — /ˌfɪzɪk(ə)l ɪnvənt(ə)ri/ noun an act of counting actual items of stock … Marketing dictionary in english
Инвентаризация (PHYSICAL INVENTORY) — Физический подсчет (или другой способ измерения) всех запасов, имеющихся в наличии. Процесс инвентаризации обычно проводится не реже одного раза в год и заключается в проведении сверки фактических остатков и состояния (стоимости) активов с… … Словарь терминов по управленческому учету
Inventory — means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English. In the USA and Canada the term has developed from a… … Wikipedia
Inventory valuation — INVENTORIES AND FINANCIAL STATEMENTS Inventories are usually the largest current asset of a business, and proper measurement of them is necessary to assure accurate financial statements. If inventory is not properly measured, expenses and… … Wikipedia
Inventory control system — An inventory control system is an integrated package of software and hardware used in warehouse operations, and elsewhere, to monitor the quantity, location and status of inventory as well as the related shipping, receiving, picking and putaway… … Wikipedia
inventory — 1. Supplies used and goods manufactured in *production processes. Inventory is normally categorized into (i) *raw materials, (ii) *work in process, and (hi) *finished goods. Under most systems of * Generally Accepted Accounting Principles,… … Auditor's dictionary
physical verification — A procedure auditors use to ensure that inventory recorded in the book is correct by actually checking out the physical inventory. Bloomberg Financial Dictionary … Financial and business terms