Inventory Cut-off
Show that goods received either side of the year end are recorded in the period they were received.
- Ledger + goods received notes either side of the year end
- Key analysis in Inventory
How the result is read
Cut-off is tested from the physical side: the goods received notes for the last days of the year and the first of the next, each traced to the invoice the ledger booked (ISA 501.4, AU-C 501.A5; the existence and completeness of inventory and payables). Goods received in the year belong in the year’s purchases and payables — booked, or accrued as received not invoiced; goods received after the year end do not, unless they travelled at the company’s risk. The note numbers are read too: the last note of the year and the first of the next are the cut-off points recorded at the count, and a note dated in the year but numbered after the new year’s first has had its date moved.
In the application
Inventory Cut-off is filed under Inventory, index letter E. "Run all analyses" runs it with every other analysis the ledger and the documents loaded can answer. The worksheet states the population it tested on its face — or "Not applicable" with the reason when a column it depends on is empty — and the Excel workbook the engagement exports files it under E, beside an index of the source files with their SHA-256 fingerprints.
Read it with
Run your next audit file test without the Excel crash.
One free engagement to evaluate, valid 60 days. The ledger never leaves the machine.
- 20 minutes
- Runs on a fictional engagement
- No client data required