Define the word “bar coding” and explain its importance to XYZ Supermarket Ltd.

Your audit senior has assigned you the responsibility of auditing the stock of your client, XYZ Supermarket Ltd. for the year ending 31 December 2005.

The company’s stock take is carried out once a year in the month of November simultaneously for all the retail outlets.

Required:
a) State the audit assurances you would seek to obtain in the audit of stock. (4 marks)

b) Describe the audit procedures that you would perform in order to be satisfied as to the validity of the amount attributed to stock in the balance sheet of XYZ Supermarket Ltd.
(12 marks)
c) Define the word “bar coding” and explain its importance to XYZ Supermarket Ltd.
(4 marks)
(Total: 20 marks)

 

 

 

 

 

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