If an auditor performs a stocktake of the inventory of Station Ltd and selects items from the factory floor to count and trace to the client’s stock sheets, the auditor will be obtaining evidence for which of the following assertions? Select one: a. Accuracy, valuation and allocation b. Completeness. c. Accuracy d. Existence

If an auditor performs a stocktake of the inventory of Station Ltd and selects items from the factory floor to count and trace to the client’s stock sheets, the auditor will be obtaining evidence for which of the following assertions? Select one: a. Accuracy, valuation and allocation b. Completeness. c. Accuracy d. Existence

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter17: Other Services Provided By Audit Firms

Section: Chapter Questions

Problem 42RSCQ

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An auditor selected items for test counts from the client’s warehouse during the physical inventory observation. The auditor then traced these test counts into the detailed inventory listing that agreed to the financial statements. This procedure most likely provided evidence concerning management’s assertion ofa. Rights and obligations.b. Completeness.c. Existence.d. Valuation.
Which of the following audit procedures is the best test of the accuracy, valuation and allocation assertion for inventory? Select one: a. Obtaining the last receiving record numbers for the period and checking that they were taken up correctly b. Confirming stock held on consignment c. Comparing standard costs to actual sales prices. d. Attending the annual stocktake
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