(ii) Work in progress
– Discuss with management how the percentage completions are attributed to WIP
– Observe the procedures carried out in the count in assessing the level of WIP; consider the reasonableness of the assumptions used
– During the count, agree a sample of percentage completions are in accordance with Jackdaw’s policies
– Discuss with management the basis of the standard costs
– Review the level of variances between standard and actual costs
– Obtain a breakdown of the standard costs and agree a sample of these costs to actual invoices
– Cast the schedule of total WIP and agree to the trial balance and financial statements
– Agree sample of WIP assessed during the count to the WIP schedule, agree percentage completion is correct and recalculate the inventory valuation

4
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