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The AMA Handbook of Due Diligence by Andrew J. Sherman, William M. Crilly

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ENTITY Form 12-04
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
288
INVENTORY CONTROL ACTIVITIES
ACTIVITY PRIMARY
RESPONSIBILITY
(1)
PERFORMED
BY:
(2)
Recommend and obtain approval of inventory
objectives.
Establish inventory control system and procedures.
[ ] Order point/economic order quantity.
[ ] Material requirements planning. (MRP)
[ ] Just-in-time. (JIT)
[ ] Other: __________________________
Classify inventory according to value and usage.
[ ] “A-B-C” classification system.
[ ] Other: __________________________
Prepare and maintain bills of materials.
Minimize inventory consistent with sales projections and
production schedules.
Human review of computer generated requirements for
high value and critical item purchases.
Prepare material purchase requisitions for purchasing
action.
Prepare inventory performance reports for upper
management.
Prepare physical inventory plans and oversee
physical inventory process.
Identify excess and obsolete items for disposal.
Notes: (1) Place “X” in this column if function performed by Inventory Control organization.
(2) Enter name of organization performing this function, if not performed by Inventory Control.
ENTITY Form 12-05
289
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
TREND IN INVENTORY CONTROL STAFFING
TREND IN BEGINNING OF YEAR STAFFING LEVELS
POSITION 20 20 20 20 20
Administrative Staff
Inventory Control Clerks
Total Inventory Control Staff
FUTURE STAFFING PLANS
What are the near term plans (i.e., next 12 months) for changes in the staffing level?
[ ] Maintain the current level. [ ] Increase by ___. [ ] Decrease by ___.
INVENTORY CONTROL FINANCIAL PERFORMANCE
TREND IN INVENTORY CONTROL EXPENSES
EXPENSE CATEGORY 20 20 20 20 YTD
(Thousands Of Dollars)
Payroll Expense
Administrative Staff $ $ $ $
Clerical Personnel
Total Payroll Expense $ $ $ $
Payroll Related Expenses
Total Payroll & Related Expense $ $ $ $
Nonpayroll Expenses
$ $ $ $
Total Inventory Control Expense $ $ $ $
As A Percent Of Revenues % % % %
ENTITY Form 12-06
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
290
PURCHASING ORGANIZATION
ORGANIZATION CHART
Organization Reports To: _____________________________________ Total Personnel: ________
ENTITY Form 12-07
291
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
RESUMES OF KEY PURCHASING PERSONNEL
NAME TITLE
ENTITY Form 12-08
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
292
COMPENSATION OF KEY PURCHASING PERSONNEL
NAME / POSITION
(1)
ANNUAL
SALARY
OTHER
COMPENSATION
(2)
BASIS FOR OTHER
COMPENSATION
(3)
$
Notes: (1) Place an asterisk after the name of individuals having employment contracts.
(2) Includes cash bonuses, stock awards, etc. for the most recent annual period.
(3) For example: Total entity profits, departmental or personal goal achievement, etc.

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