Bafu Ltd., a private limited company, manufactures a wide range of bathroom fittings. These fittings are made from steel components which are chromed in small vats. The steel components are sourced from outside suppliers. The year end stock mainly consists of these steel components and finished items. As at 31 October 2004, the total stock was valued at Sh. 6,048,000 out of total assets of Sh. 19,200,000. This stock figure was obtained by a physical count as at 31 October 2004, and valuation by reference to purchase invoices and manufacturing cost estimates. Required: With reference to each of the matters listed below, state the work you would do to conclude whether the amount attributed to stock is fairly stated. Identification of stock items

Identification of stock items
• Comparing stock items in the stock sheets with the items of stock in the shelves/store.
• Verifying that stock items‘ description in the stock sheet match the actual stock item (as per given code) in the store.
• Ensure there is a clear distinction between finished units and steel components and that work-in-progress, if any is clearly identified.
• Verify that stock-in-transit is not included in stock count since it‘s not present at the store. This is recorded in purchases journal.

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Bafu Ltd., a private limited company, manufactures a wide range of bathroom fittings. These fittings are made from steel components which are chromed in small vats. The steel components are sourced from outside suppliers. The year end stock mainly consists of these steel components and finished items. As at 31 October 2004, the total stock was valued at Sh. 6,048,000 out of total assets of Sh. 19,200,000. This stock figure was obtained by a physical count as at 31 October 2004, and valuation by reference to purchase invoices and manufacturing cost estimates. Required: With reference to each of the matters listed below, state the work you would do to conclude whether the amount attributed to stock is fairly stated; Quantities
Warehouse Operations and Stock Control July 2016 Past Paper - KNEC Certificate
Your firm audits Clean Paints Ltd. and you are planning the audit of stock and work in progress for the year ended 31 December 2000. Clean Paints Ltd. determines the value of stock in its financial statements by the year -end stocktake. There is no perpetual Stock Inventory System though stock is counted quarterly for the purposes of management accounting.Stock and work in progress is held at the warehouse which is next to the company‘s factory.Required:State the areas that you will expect the client‘s stocktaking instructions to cover
. Your firm audits Clean Paints Ltd. and you are planning the audit of stock and work in progress for the year ended 31 December 2000. Clean Paints Ltd. determines the value of stock in its financial statements by the year -end stocktake. There is no perpetual Stock Inventory System though stock is counted quarterly for the purposes of management accounting.Stock and work in progress is held at the warehouse which is next to the company‘s factory.Describe the work you will perform and the matters you will record at the stocktake attendance
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