An auditor selected items for test counts while observing a client’s physical inventory.The auditor traced the test counts to the client’s inventory listing. This procedurelikely obtained evidence about which balance-related audit objective for inventory?(1) Existence (3) Completeness(2) Rights and obligations (4) Realizable value

Q: When verifying debits to the perpetual inventory records of a nonmanufacturing company, auditors…

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

Q: Which of the following management assertions is an auditor most likely testing if the audit…

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

Q: Following are audit procedures commonlyperformed in the inventory and warehousing cycle for a…

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

Q: If the auditor conducts test of the inventory controls at an interim date, is it appropriate to…

A: As a part of audit procedure test of controls are used to test the effectiveness of a control used…

Q: The auditor generally decides whether the inventory count can be taken before year-end primarily on…

A: AUDIT REFERS TO INDEPENDENT EXAMINATION OF FINANCIAL ACCOUNTS WEATHER PROFIT ORIENTED OR NOT TO…

Q: In the audit of inventory the auditor must perform important procedures prior to the actual…

A: Audit of inventory refers to the cross-verification of inventory physically present with the…

Q: Which of the following audit procedures is the best test of the accuracy, valuation and allocation…

A: An inventory audit is an audit where an auditor cross-checks the inventory records with the…

Q: The auditor is verifying whether all goods received by the company have been recorded appropriately.…

A: Auditor is one who audits the financial statement of company so as to provide fair view on the…

Q: the auditor is verifying whether all goods received by the company have been recorded appropriately.…

A: Source Documents - Source documents are the document using which auditor can check the genuineness…

Q: he auditor of Kent Ltd selects a sample from the file of shipping documents in order to confirm that…

A: An audit report is provided by an independent auditor that contains the opinion of the auditor on…

Q: An auditor will most likely review an entity’s periodic accounting for the numerical sequence of…

A: Completeness represents that assets and liabilities are recorded and proper disclosure has been made…

Q: Your audit client is under intense pressure to meet an earnings target. Which transaction assertion…

A: Assertions are the procedural claims that determine whether the financial statements are fairly…

Q: The auditor selects a sample of asset disposals and examines the sales documentation evidencing…

A: An audit is one of the important processes that is used for financial statements. Financial…

Q: When an audit team traces a sample of shipping documents to the related sales invoice copies, they…

A: Accounts Receivables: Accounts receivables are those accounts that occur due to incomes for which…

Q: The auditor can evaluate the materiality of a transaction or a balance with the "nature of the item"…

A: Materiality of a transaction or a balance is determined by the extent of its effect on decisions…

Q: 13-31

A: note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: An audit trail enables a person to trace a source document to its ultimate effect on the financial…

A: Audit trails are manual or electronic records that are chronologically defined events to provide…

Q: Which of the following audit procedures uses “a purchase transaction” as the sampling unit?   A.…

A: Audit Procedures for Purchase Transaction The proper audit procedures which are needed in the…

Q: Listed below are several of the auditors’ general objectives in performing substantive procedures on…

A: Audit procedures is the criteria or steps performed by the auditor in order to get all the…

Q: when the auditor Watch employees count inventory to determine whether company procedures are being…

A: Ans. An auditor carries out various audit procedures like observation, inspection, confirmation,…

Q: Indicate whether each of the following audit procedures is a testof controls, a substantive test, or…

A:

Q: Explain why you agree or disagree with the following statement:“In most audits, it is more important…

A: I agree with the given statement as in most audits, it is much important to test carefully the…

Q: onducting which of the following steps, the auditor can obtain sufficient and appropriate audit…

A: The sufficiency and appropriateness are the two components based on which the auditor decides on the…

Q: Before expressing an opinion concerning the audit of income and expenses, theauditor will best…

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: Which of the following best describes the reason that the auditors record their inventory test…

A: Working paper is the document prepared in the process of Audit. Working paper are prepared by…

Q: You are testing inventory.  You determined that inventory exists, nothing is missing from inventory,…

A: The following are some examples of inventory risks: Due to the difficulty of valuing inventory, it…

Q: In determining whether transactions have been recorded, the direction of the audit testing should be…

A: An audit is a process of examining the books of accounts by the auditor so as to know whether the…

Q: What is the primary purpose of analytical procedures performed during the planning stages of the…

A: Solution: Analytical Procedures refers to the evaluation of financial information via identifying…

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: In which of the following circumstances would the audit team most likely use attributes sampling?a.…

A:

Q: To gather audit evidence about the proper credit approval of sales (i.e., valuation assertion), the…

A: Audit is the detailed process of checking and verifying books of accounts and financial information…

Q: Which documents would an auditor most likely choose to examine closely to ascertain that all…

A: Option d. receiving reports is the answer

Q: For each of the following audit procedures, state which type of evidence-gathering technique is…

A: The question is related to the Auditing. Itbis related with the technique used to gathering…

Q: goal of this substantive audit procedure

A: Option b is wrong because for determining the proper recording of purchases, there is no need to…

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: How could the auditors have determined that the inventory balance was materially misstated? What…

A: Auditor is the independent qualified personnel who is a professional certified CPA. Auditor is…

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: During the audit of a large manufacturing company, the auditor did not observe all locations of…

A: Unqualified and standard wording.

Q: For which of the following tests would an auditor most likely use attribute sampling?(1) Selecting…

A: Attribute sampling: When an auditor is willing to evaluate the characteristics of a given population…

Q: (Substantive tests and audit evidence) In meeting the third standard of field work, the auditor may…

A: Auditors employ the test of details to verify the specifics of particular transactions or balances.…

Q: What three types of authorizations are commonly used as internalcontrols for sales? For each…

A: Meaning of Internal Control Internal controls are the activities which an organization implements to…

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: An auditor discovered the following errors and irregularities while performing tests of controls:…

A: 1. An effective internal control system for inventory will include all procedures and actions that…

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.