Apollo Audit Auditing Apollo Shoes Inventory and Essay

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Apollo Audit

Auditing Apollo Shoes

Inventory and Warehousing: Test of Controls

Testing the controls that exist in the inventorying and warehousing processes at Apollo Shoes consists of the auditor ensuring that the existing controls actually measure what they set out to measure, and that these measurements reflect that actual movement of goods and materials through the various parts of the business (Arens et al. 2008). Certain processes, such as the means by which inventory is checked in and out of various stations in the business, must also be examined (Arens et al. 2008). Ensuring that these practices are able to influence physical movements of materials and goods is key to the audit process.

Inventory and Warehousing: Test of Transaction

In order to test the transaction that exist in Apollo Shoe's inventory and warehousing processes, the specific physical and record-keeping details of the company must be determined by the auditor. A typical flow of inventory through purchasing, warehousing, and distribution includes raw materials purchasing, manufacturing through labor and other processes, storage, and shipment, and all of these steps apply to Apollo Shoes (Arens et al. 2008). An audit that tests the existing controls on these procedures must be able to compare record-keeping details to actual inventories at each step in the process/transfer of materials or goods, and for Apollo Shoes this means checking invoices of incoming raw materials against the physical shipments, tracking any waste of materials through the manufacturing process, ensuring that the right number of finished goods per unit of material are produced, and that all of these goods are accounted for in the warehouse and on documents pertaining to their shipment/existence.

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Inventory and Warehousing: Analytical Procedures

The last step in inventorying the inventory and warehousing procedures in place at Apollo shoes would be to make sure that the findings of the control and especially the transaction tests, as well as other information regarding purchases and sales, make sense in the light of prior years' numbers (Arens et al. 2008). The cost of goods sold and the volume of material purchased should be in roughly the same proportion as in previous years, taking into account changes to cost of supplies such as leather and rubber used in the manufacturing of the shoes. Other statistics that measure not simply the performance of the company but the physical amounts of resource consumption, time….....

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"Apollo Audit Auditing Apollo Shoes Inventory And", 16 October 2011, Accessed.21 May. 2025,
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