Assignment: Production Cycle
1.
2.
3.
4.
5.
6.
What are the specific audit objectives of production cycle audit?
What are the documents normally support the production
report?
Describe the sequence of production activities.
State the normal functions and related controls of
manufacturing activities.
Prepare tick-mark for the audit of production report, involving
tick-mark for: production data*, manufacturing costs, unit
equivalent product, and allocation of production costs.
* Production data consists of beginning WIP Inventory, current
production units, finished goods, ending WIP Inventory .
Beginning WIP 200 unit (80% RM, 70% CC), Goods
Manufactured 5.000 units, ending WIP 300 units (70%RM,
60%CC). Compute the product equivalent units for Raw
Material, Direct Labor, and Overhead Cost, that should be used
by client to determine costs/unit per item costs.
UNIVERSITAS ISLAM INDONESIA
Lecture Highlight
Tuestday, 6 December 2011
Auditing Personnel Service Cycle
1. List the key transactions in the PS Cycle.
2. State the specific audit objectives, particularly on
the account balance side of the payroll.
3. List the common documents and records.
4. List the common functions in the payroll
transactions.
5. State the possible tests of detail of transactions
for the payroll transactions.
6. State the possible tests of detail of account
balances for the payroll accounts.
7. Transform the audit procedures in the instructions
no. 5 and 6 into form of tick-mark which will be
written down in your working papers.