By conducting which steps, the auditor can obtain sufficient and appropriate audit evidence regarding existence of inventory, when the inventory is under the custody and control of third party and the auditor considers it material to the Financial statements a) Request confirmation from the third party b) Perform inspection if possible c) Auditor can take an expert advise d) Include it in the Auditors Opinion Only d) Both a) and b) Only a) Only b) a) , b) and c) only

Q: The auditing standard that is relevant to ISA 250, consideration of Laws and Regulations in an audit…

A: An auditor is appointed by the shareholders of the company to examine the accounting books including…

Q: Dodge, CPA, is auditing the financial statements of amanufacturing company with a significant amount…

A: Trade account receivables are the payments which the customer owes to the company. They arise when…

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: 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 which of the following situations would observation not provide the most compelling audit…

A: Introduction:- Audit evidence includes all of the information used by the auditor to support the…

Q: Explain whether or not analytical review procedures would be sufficient for the audit of the…

A: Auditing is the examination and verification of the financial statements prepared by the entity and…

Q: If an auditor performs a stocktake of the inventory of Station Ltd and selects items from the…

A: Auditing involves an independent examination of financial records of the entity with a view to…

Q: Which of the following statements are True i. The auditor has a responsibility to plan and perform…

A: Option The auditor has a responsibility to plan and perform the audit so as to obtain reasonable…

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: When auditing inventories, an auditor would least likely verify thata. All inventory owned by the…

A: Answer:   Option a

Q: attendance of the auditors during the physical inventory coun

A: Answered:

Q: Assume an auditor wishes to execute a meaningful analytical technique to offer audit evidence to…

A: Introduction:- Interest is a fixed expenditure payment to the loan issuer by the company on fixed…

Q: Describe the financial statement's aims and purposes, and explain how the auditor intends to verify…

A: This question dells with  the financial statement's aims and purposes, and explain how the auditor…

Q: An auditor usually traces the details of the test counts made during the observation of physical…

A: An auditor traces the details of test counts of physical inventory to final inventory compilation in…

Q: A primary objective of analytical procedures used in the final review stage of an audit is toa.…

A:

Q: In auditing the client’s receivables, the auditor decided to select entries in the sales journal and…

A: Assertion of Existence: Assets or liabilities of the company exist at a given date, and recorded…

Q: If you are an auditor and assigned to audit inventory. So as an auditor 1. How do you ensure that…

A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first 3…

Q: The following audit procedures are consistent with gathering evidence about the valuation assertion…

A: Accounts receivables are those accounts to whom business has made credit sales on account and amount…

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: Suppose an auditor wants to perform a substantive analytical procedure to provide audit evidence to…

A: Interest expense can be referred to as the amount that is paid or payable on the amount borrowed…

Q: The most reliable types of audit evidence the auditor can obtain are: a. Physical examination by…

A: Audit evidence: It can be defined as the information collected or obtained by an auditor during the…

Q: An independent auditor has the responsibility to design the audit to providereasonable assurance of…

A: The independent auditor’s plays a vital role regarding the internal controls of a public company.…

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: Which of the following audit procedures probably would provide the most reliable evidence related to…

A:

Q: When testing the existence assertion, the auditor will take the vouching direction when examining…

A: VOUCHING MEANS INSPECTION OF DOCUMENTARY EVIDENCE SUPPORTING & SUBSTANTIATING TRANSACTIONS . 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: When the auditor uses supporting evidence for amounts posted to account balances with documentary…

A: The term "audit" refers to the process of determining the information's trustworthiness and…

Q: The audit objective that all journal entries were included in the financial statements is related to…

A: These assertions are made by the management. These are the claims regarding certain aspects of the…

Q: Choose the one correct answer.  As part of your audit of a client's inventory balance, you created…

A: The question is related to Analytical Procedure and is related with test of details.

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: emphasis of the auditor in the following audit procedures?

A: Option 1 is wrong because by confirming the total amount of accounts payable subsidiary record with…

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: he auditor has a responsibility to plan and perform the audit so as to obtain a _________ about…

A: An audit is conducted with the objective that the financial statement that they audit provide a true…

Q: The main object of an audit is a. Expression of expert opinion b. Detection and Prevention of fraud…

A: THE MAIN OBJECTIVE OF AN AUDITOR IS TO  EXAMINES THE BOOKS OF ACCOUNTS OF A COMPANY THROUGH WHICH…

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: Which of the following auditing procedures probably would provide the most reliable evidence…

A: Trace test counts noted during the entity’s physical count to the entity’s summarization of…

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: When auditing the accounts receivable account on the balance sheet, an auditor’s procedures most…

A: Accounts receivables include those consumers or firms which have not paid the amount to the…

Q: A major objective of written representations is toa. Shift responsibility for financial statements…

A: The auditor requires collecting sufficient and appropriate audit evidence during the audit for…

Q: At the completion of an inventory observation, the controllerrequested the auditor to give him a…

A: Given case is: At the completion of an inventory observation, the controller requested the auditor…

Q: As part of your audit of a client’s inventory balance, you created an expectation of what should be…

A: SOLUTION- IF THE ESTIMATES MADE BY THE AUDITORS GIVES CONFUSING INVENTORY BALANCE , THE AUDITOR…

Q: In a financial statement audit, the auditor obtains a reasonable level of assurance about whether…

A: The auditor's duty is to provide a reasonable assurance of whether financial statements are free…

Q: List two examples of audit evidence the auditor can use in supportof each of the following:a.…

A: Auditing: It is an independent process of inspection, verification, examination of financial…

Q: What procedures must the auditor perform when gathering evidence related to contingencies? (Several…

A: Audit evidence: Audit evidence refers to the information and explanations used by the auditor in…

Q: As a result of management's refusal to permit the auditor to physically examine inventory,…

A: When auditor is restricted from obtaining sufficient audit evidences in relation to any item of…

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…

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.