A В D REQUIRED: IDENTIFY THE ASSERTION[S] RELATED TO EACH AUDIT PROCEDURE ASSERTION[S] E= existence C=Completeness A=Accuracy CI=Classification Cu=Cutoff V=Valuation RO=Rights & Procedure Obligations A Compare sales invoices with customer purchase orders B Compare selected items on the inventory list with the physical inventory.

Q: List the eight balance-related audit objectives in the verificationof the ending balance in…

A: Balance related audit objectives helps auditors to accumulate enough information and evidences to…

Q: Question 2: Following are audit procedures commonly per- formed in the inventory and warehousing…

A: Auditing Auditing is one of the important things of the company to verify the total performance of…

Q: 7. If there is an association between an INVENTORY class and a SUPPLIERS class, which of the…

A: Inventory: Stocks of raw materials, work-in-progress (WIP), finished goods, and spare parts and…

Q: An auditor most likely would analyze inventory turnover rates to obtain evidence concerning…

A: Inventory turnover rate is the rate which shows how many times a company has sold and replaced it's…

Q: Changing the method of inventory valuation should be reported in the financial statements under what…

A: Inventory- A manufacturing company's inventory is a critical current asset. Inventory refers to the…

Q: The tests of controls for inventory records would include the following procedures. A. Existence. B.…

A: 1. C Trace a sample of sales invoices to perpetual inventory record entry of issue. Completeness 2.…

Q: Delaney Humphrey was explaining the importance of documentary evidence. Which assertion was she…

A: The audit is the detailed process of checking and verifying books of accounts and financial…

Q: A typical substantive procedure for inventory balance and purchase transactions may include…

A: The question is related to the Substantive audit procedures. The Substantive audit procedures are…

Q: Identify whether each description best applies to a periodic or a perpetual inventory system.…

A: Perpetual inventory system is a system that records real time transactions of received or sold…

Q: Which function or department below records the decrease in inventory due to a sale? a. warehouse b.…

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: Before inventory purchases are recorded, the receiving report should be reconciled to what…

A: Inventory refers to the raw materials, work-in process, and the finished goods products that are…

Q: Which of the following is a substantive test in relation to completeness? a. Inspect physical…

A: Inspect physical inventory, checking from inventory records to physical stock is an Audit assertion…

Q: Which of the following statements about merchandisingactivities is true? (More than one answer may…

A: Merchandising activities means activities of purchase and sale of goods that are ready for sale.…

Q: To determine the client’s planned amount and timing of production of a product, the auditor reviews…

A: The process that accounts the conversion of raw materials to work-in-progress to finished goods…

Q: uestion 2: Following are audit procedures commonly per- formed in the inventory and warehousing…

A: Audit procedure: Audit procedures are used by auditors to determine the quality of financial…

Q: When auditing merchandise inventory at year-end, the auditor performs audit procedures toensure that…

A: option B) Existence

Q: SYSTEM DOCUMENTATION EXPENDITURE CYCLE (MANUAL PROCEDURES) The following describes the expenditure…

A: Data flow diagrams for the expenditure cycle are as follows :

Q: The auditor computed inventory turnover and compared it to prior years.  This substantive test…

A: Auditing inventory refers to cross-checking the physical inventory with the inventory reported in…

Q: An auditor selected items for test counts while observing a client’s physical inventory.The auditor…

A: Qualitative characteristics of Accounting Information System:   Qualitative characteristics are…

Q: For each of the following statements, enter a T or and FI the blank to mdicate whether the statement…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: An auditor verify entries in the An example of acquisitions journal by examining supporting vendors…

A: Vouching is nothing but verification of journal entries in the books of account by examining the…

Q: Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration…

A: Overstatement of ending inventory will reduce the cost of goods sold and also increase the opening…

Q: The two systems of measuring inventory are: Select one: a. perpetual and periodic b. periodic and…

A: Answer: Option a

Q: An auditor selected items for test counts while observing a client’s physical inventory. The auditor…

A: Management assertion: Management assertion refers to the claim made by the management assuring about…

Q: Explain the relationship between tests of the acquisitionand payment cycle and tests of inventory.…

A: The acquisition, as well as payment cycle, has the relationship with the inventory accounts in the…

Q: An auditor would vouch inventory on the inventory status report to the vendor’s invoice toobtain…

A: Management assertion: Management assertion refers to the claim made by the management ensuring the…

Q: Inquiries of warehouse personnel concerning possible obsolete inventory items provide assurance…

A: The value of inventory, the lower of cost and net realizable value, and obsolete items are among…

Q: A client maintains perpetual inventory records in quantities and in dollars. If the assessed control…

A: Perpetual Inventory Records:   A process of accounting that constantly updates its records with…

Q: What is the primary reason we perform physical inventory observations? A. To obtain sufficient…

A: Inventory : It is the stock of raw material work in process and finished goods Kept in the store for…

Q: An auditor often tries to acquire background knowledge of theclient’s industry as an aid to audit…

A: Given: The gaining of knowledge by the auditor in differentiating obsolete and current inventory.

Q: When evaluating inventory controls, an auditor would be least likely toa. Inspect documents.b. Make…

A: Auditing:   In auditing, auditors verify the correctness and fair presentation of financial…

Q: Of the following, select the attribute that would be the best primary key in an inventory table. a.…

A: A primary key in a database is the unique identifier which can identify a particular item anywhere…

Q: STATEMENT 1: The broad categories of assertions are the basis of the auditor in develaping specific…

A: Management Assertion: It is the  claims made by members of management  and is used in regard to the…

Q: the auditor picks an item of inventory from the warehouse and determines whether it is included in…

A: Management assertions are the claims made by executives regarding certain aspects of a business. The…

Q: Entity-level controls can have a pervasive effect on the entity's ability to meet the control…

A: Controls to monitor results of the operations is an entity level control. Controls to monitor the…

Q: audit of a client's inventory balance

A: Option a is wrong because the difference may be attributable to the estimate made by the auditor.…

Q: How does inventory control deficiencies affect the development of audit procedures for inventories

A: Answer: The audit procedures are to be designed such that the total audit evidences can be…

Q: Explain the following statement: “Inventory errors correct themselves.”

A: Solution: Introduction: Inventory means goods are available for sale and raw materials used in the…

Q: Refer to Exhibit 6.5 to identify the nine types of audit procedures used as part of the audit…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS    Procedure Type of procedure Assertion Tested…

Q: A typical substantive procedure for inventory balance and purchase transactions may include…

A: Should disclose separately in Financial statements and notes to accounts

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.