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Audit of Logistics Quiz

The document provides an audit of logistics theories and problems. It contains multiple choice questions regarding logistics definitions, roles, processes, financial reporting standards, and audit procedures. It also lists inventory carrying costs for a company and asks to calculate totals for transportation costs, inventory carrying costs, handling and loading/unloading costs, logistics information software costs, and administrative costs based on the data provided.

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arianne chiu
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2K views3 pages

Audit of Logistics Quiz

The document provides an audit of logistics theories and problems. It contains multiple choice questions regarding logistics definitions, roles, processes, financial reporting standards, and audit procedures. It also lists inventory carrying costs for a company and asks to calculate totals for transportation costs, inventory carrying costs, handling and loading/unloading costs, logistics information software costs, and administrative costs based on the data provided.

Uploaded by

arianne chiu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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AUDIT OF LOGISTICS: THEORIES

1.) Refers to a larger network of outside organizations that work together to deliver products to
customers, including vendors, transportation providers, call centers, warehouse providers, and others.
a. logistics
b. supply chain management
c. transportation and logistics industry
d. courier company

2.) Logistics managers are referred to as ____________.


a. logisticians
b. statisticians
c. top management
d. courier manager

3.) The process of planning and executing the efficient transportation and storage of goods from the point
of origin to the point of consumption.
a. logistics
b. logistics management
c. transportation
d. shipment

4.) Is there a unique balance sheet structure for Logistics Companies (railway, trucking…)
a. Yes, there is. They are all the same as long as they are under the logistics category.
b. None. They are inhomogeneous because the financial statements are dependent on the
management of the logistics company.
c. None. They are inhomogeneous because logistics companies have different categories
and each category has different activities.
d. Yes, they are homogeneous because the line items to be put in the financial statements are
standardized across the logistics industry.

5.) IFRS 15 applies to all contracts with customers except for:


a. Product warranties
b. Delivery/Shipment contract
c. Customer loyalty programs
d. Lease contract

6.) The sequence of the procedure of the audit of logistics is:


1. Preliminary observation of company’s operation
2. Implementation
3. Logistics Field Audit Process
4. Positioning of logistics strategies to the company’s corporate objectives
5. Negotiation on the audit service agreement

a. 4, 6, 3, 2, 1, 5, 7
b. 1, 4, 7, 6, 3, 2, 5
c. 1, 4, 7, 2, 6, 5, 3
d. 7, 1, 4, 2, 6, 3, 5

Determine which step in the audit procedure are the following activities encapsulated?
a. Preliminary observation of company’s operation
b. Implementation
c. LFA
d. Positioning of logistics strategies to the company’s corporate objectives

7.) Check the adherence of practices to laws and regulation d


8.) Data collection about the company’s development of relevant information systems (KPIs) and check
its implementation and methodology c
9.) Preliminary interviews and observations will lead to make a proposal for providing a Logistics Field
Audit. a
10.) Comparison of current practices against potential levels of performances and results across the key
logistics system attributes d

AUDIT OF LOGISTICS: PROBLEM


Among the following inventory carrying costs,

Interest expense 70,000


Fuel costs 36,000
International maritime transportation costs 300,000
Miscellaneous oil costs 9,000
Port, road, railway, airfreight, private handling 55,000
cost
Inventory risk costs (Taxes, obsolescence, 187,000
depreciation, insurance)
Vehicle insurance cost 70,000
Warehousing 75,000
Tire wear-and-tear costs 35,000
Administrative personnel annual salary 480,000
Vehicle repair and maintenance cost 183,000
Inventory management software (Oracle) 132,000
Toll 30,000
How much is the:
1. Transportation costs (36,000 + 9,000 + 35,000 + 70,000 + 183k + 300k))
2. Inventory carrying costs (187k + 75k)
3. Handling and loading/unloading costs (55k)
4. Logistics information software costs (132k)
5. Administrative costs (480k)

Transportation Inventory Handling and Logistics Administrative


costs carrying costs loading/unloading information costs
costs software costs
International Inventory risk Port, road, railway, Inventory Administrative
maritime costs (Taxes, airfreight, private management personnel annual
transportation obsolescence, handling cost software salary
costs depreciation, 55,000 (Oracle) 480,000
300,000 insurance) 132,000
187,000
Miscellaneous oil Warehousing
costs 75,000
9,000
Interest expense
70,000
Fuel costs
36,000
Vehicle insurance
cost
70,000
Tire wear-and-tear
costs
35,000
Vehicle repair and
maintenance cost
183,000
Toll
30,000
733,000 262,000 55,000 132,000 480,000

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