Describe the procedures, documents, and departments involved when insufficient inventory is available to fill a customer’s approved order.

Q: A portion of a client’s inventory is in public warehouses. Evidence of the existence of this…

A: Existence assertion says that all assets and liabilities of the business present in the financial…

Q: Determine the effects of inventory errors on the financial statements.

A: If you understated ending inventory, your cost of goods sold will be overstated by the error amount,…

Q: Explain what is meant by the Internal Revenue Service conformity rule with respect to the inventory…

A: Internal Revenue Service conformity rule is when prices rise and inventory quantities are not…

Q: procedure reduces record-keeping, it also reduces control over inventory items. a. None of the…

A: There are two inventory methods which are followed by the entity which are, (1) Periodical inventory…

Q: Which of the following is a characteristic of a periodic inventory system? a. The system reports how…

A:

Q: Which of the following are characteristics of a perpetual inventory system? (a). Management knows…

A: There were two types of inventory systems to record and maintain inventory.   1. Periodic…

Q: Which of the following automated application controls would offer reasonable assurancethat inventory…

A: Auditing is a gathering of information and evaluation of evidence as to report on the degree of…

Q: Explain the cost of inventory of a service provider.

A: Inventory refers to the stock of a company that is kept in storage for the final purpose of selling…

Q: If inventory errors are said to correct themselves, why are accounting users concerned when such…

A:

Q: attendance of the auditors during the physical inventory coun

A: Answered:

Q: In the revenue cycle (for sales on credit), a customer places an order for a certain product. Which…

A: Every time an order is received by an organisation, there is whole set of process that needs to be…

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: Is an adjusting entry needed for inventory shrinkage when using the periodic inventory system?…

A: Definition:

Q: Indicate the effects of inventory errors on the financial statements

A: Solution- 1-A merchandising company must be sure that it has properly valued its ending inventory.…

Q: Which of the following procedure is designed to prevent the company from ordering unnecessary items?…

A: D) Approval of purchase requisitions is the procedure designed to prevent the company from ordering…

Q: Describe Change in Inventory Method and Inventory Errors.

A: Change in Inventory method:   Inventory change is the difference between the amount of last period's…

Q: The following describes the expenditure cycle manual procedures for a hypothetical company. The…

A: Expenditure Cycle The expenditure cycle is defined as the set of activities that are related to the…

Q: Explain the appropriate accounting treatment required when a change in inventory method is made.

A: Definition:   Change in inventory method: Change in inventory method is said to be the difference…

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

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

Q: A master production schedule is most likely to be useful in O identifying erroneous journal entries.…

A: Solution: A master production schedule is the prepared by company to estimate its production for the…

Q: what are the objectives of eliminating the receiving function. What accounting/audit problems need…

A: Receiving Department:   The receiving department is in obligation of inspection and the receiving…

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

A: Given description is:  Requires an adjusting entry to record inventory shrinkage.

Q: a) Prepare the purchase ledger (account payables) control account and the sales ledger (account…

A: (a)

Q: To reduce the risk of allowing an order to proceed when goods are not available or rejecting an…

A: solution : The correct answer is Maintain accurate and timely perpetual inventory records and…

Q: In the sales/OE system, when a customer's order is entered into the system, and before accepting the…

A: Every entity before accepting the order from the customer needs to check the master data. It…

Q: Prepare a data flow diagram and a system flowchart of the expenditure cycle procedures previously…

A: Expenditure Cycle:   The expenditure cycle is defined as the set of activities that are related to…

Q: What are the risks that are caused by the following combination of tasks? - The warehouse clerk who…

A: Solution- Warehouse clerk: Warehouse clerk has custodial responsibility as well as record keeping…

Q: Which of the following will be the most appropriate test to determine wherether purchase orders are…

A: Purchase order: Purchase order is a document send by a buyer to seller indicating all the…

Q: Answer the following questions. a. Which department is responsible for initiating the purchase of…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

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: Under a just-in-time inventory system, management strives to O None of the answers are correct.…

A: Answer is = Have inventory available when it is needed.

Q: a. Permits entities to avoid taking an annual physical d. Provides a method for inventory control…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The inventory control clerk examines the inventory records for items that must be replenished and…

A:

Q: Which one of the following inventory management approaches determines the finished goods inventory…

A: Introduction: To run the day-to-day business, the inventory management system is essential or as it…

Q: Explain the appropriate accounting treatment required when an inventory error is discovered.

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: Which of the following internal control activities most likely addresses the completeness assertion…

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

Q: Which one of the following departments does not have a copy of the purchase order?a. the purchasing…

A: Answer:   Option d.

Q: In the expenditure cycle, the control procedure of comparing inwards goods documents to vendor…

A: Solution : Correct answer are               -failure to take advantage of discounts for prompt…

Q: Sales orders are written by sales people who have no access to the goods, which are released by…

A: Delegation of authority: It is the organizational process of allocation of tasks to subordinates…

Q: Some inventory errors are said to be “self-correcting,” in that the error has the opposite financial…

A: Errors: Despite best efforts, occasionally an error is made on the financial statement. Most often,…

Q: Why is it important for auditors to obtain control information over inventory count sheets or…

A: Auditing inventory is the process of cross-checking financial records with physical inventory and…

Q: A serious exposure in the ordering process of the expenditure cycle is increased inventory costs.…

A: Inventory Cycle: The inventory cycle is the method involved with getting, arranging, and dealing…