Office of the Controller Self-Assessment of Internal Controls Inventory Cycle Objectives and Risks Agency ____________________________ Year-End _________ Objectives All transactions are approved by authorized Purchase unauthorized materials individuals. acquired in excess of need, at appropriate prices, or at unfavorable All inventory items are subject to effective Theft by employees or outsiders; custodial accountability procedures and inadequate insurance coverage. physical safeguards. All receipts and withdrawals of inventory are No for comparing actual usage properly recorded and the records reflect with expected usage; inability to determine actual quantities on hand. material reorder points. All transactions are properly accumulated, Misstated financial statements; classified and summarized in the accounts. concealment of shortages.
Office of the Controller Self-Assessment of Internal Controls Inventory Cycle Objectives and Risks Agency ____________________________ Year-End _________ Objectives All transactions are approved by authorized individuals. Purchase unauthorized materials acquired in excess of need, at appropriate prices, or at unfavorable All inventory items are subject to effective custodial accountability procedures and physical safeguards. Theft by employees or outsiders; inadequate insurance coverage. All receipts and withdrawals of inventory are properly recorded and the records reflect actual quantities on hand. No for comparing actual usage with expected usage; inability to determine material reorder points. All transactions are properly accumulated, classified and summarized in the accounts. Misstated financial statements; concealment of shortages.
NCOSC_Risk_Assessment2009ICQ_SAUCC.docx