Goods on Consignment

Where a separate account in respect of each consignment is not being maintained and only memoranda accounts in respect of goods sent on consignment are kept, the auditor should make sure that stocks sent out on consignment but unsold have been included in the closing stock; when a separate account in respect of each consignment is being maintained, the auditor should verify that the debit balance in each Consignment Account represents only the cost of unsold goods plus proportionate expenses incurred on their transport and transit insurance; also that a provision has been made or any damage or loss suffered the stock or for a fall in sale price.

(Visited 2 times, 1 visits today)
Share this:

Written by