The purpose of tracing a sample of inventory tags to a client’s computerized listing of inventory items is to determine whether the inventory itemsa. Represented by tags were included on the listing.b. Included on the listing were properly counted.c. Represented by tags were reduced to the lower of cost or market.d. Included in the listing were properly valued.

Q: Which of the following is not an advantage of a perpetual inventory system? a. Assists in the…

A: The perpetual inventory method is a much better method in comparison to the periodic inventory…

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: Identify the type of audit evidence used for each of the audit procedure above. Explain TWO (2)…

A: Audit evidence are the evidence an auditor collects while doing procedures to reach on a conclusion.

Q: Do you apply the LCNRV method to each individual item, to a category, or to the total of the…

A:

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: From the information provided below can you please complete the given table using the FIFI method of…

A: Under FIFO Method, units which came in first will be issued first and the inventory will be out of…

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: 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 steps necessary to calculate and record LIFO Reserve, and consequential Write-Down under…

A: LIFO reserve refers to the inventory method which is defined as the difference among what the ending…

Q: Which of the following costs do not come under inventory carrying cost calculation? Investment in a…

A: The ideal order quantity for a corporation to purchase in order to minimize inventory costs is known…

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: attendance of the auditors during the physical inventory coun

A: Answered:

Q: Which of the following methods of inventory control will be used in case of a business whose…

A: Inventory control is a process of managing stock at the warehouse. It involves the optimization of…

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: 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: Which of the following is not an advantage of a perpetual inventory system? a. assits in the…

A: Under the perpetual inventory system, transaction related to the inventory is updated immediately as…

Q: Explain issues that analysts should consider when examining a company’s inventory disclosures and…

A: Inventory Disclosure: Inventory disclosure is useful for management to evaluate inventory…

Q: A В D REQUIRED: IDENTIFY THE ASSERTION[S] RELATED TO EACH AUDIT PROCEDURE ASSERTION[S] E= existence…

A: Audit Procedure:- An audit procedure is referred as the procedure which is used by the auditor to…

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: Tracing the Inventory Count. You have been assigned to trace the results of the observation of…

A: Physical Inventory Observation: Physical inventory observation is a process intended to assist the…

Q: Which of the following methods of inventory control will be used in case of a business whose…

A: Tracking down of every single item of inventory individually from the time it enters in production…

Q: What conditions must exist for the retail inventorymethod to provide valid results?

A: Retail inventory method: This method is like a gross profit method. It depends on the relationship…

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

A:

Q: What analytical procedures might reveal obsolete or slow-moving inventory?

A:

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: Based on the following data, make a comparison between the use of the flow of inventory costs…

A: Given, sales = $200000 Selling per unit = $5 per unit Total number of units sold = Sales / selling…

Q: In the basic technology system, the inventory control clerk reviews the purchase requisition file to…

A: Inventory purchase procedure: This procedure takes into account the functions relating to…

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: When inventory items have price movements in excess of 50% (considered material), how does this…

A: As per AICPA, "Inherent risk is the risk of material misstatement assuming no related controls,…

Q: Would the writing down of obsolete inventory be recorded in a special journal or the general…

A: Journal: A journal can be defined as the historical record of the financial transactions. Documents…

Q: The factor that determines whether goods should be included in a physical count of inventory is…

A: Physical count helps in tracking the inventory and efficiency of management control.

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: You have been asked by the financial vice president to develop a short presentation on the LCNRV…

A: a. As per GAAP, the inventory is to be valued at the lower of its cost i.e. the laid down cost or…

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: nventory valuation is used to calculate the cost of goods sold and cost of ending inventory. The…

A: First in First out Method This is one of the popular method of inventory valuation.  While using…

Q: For each statement below, identify whether the statement applies to the periodic inventory system,…

A: Periodic Inventory System-  It refers to the system under which the physical count of the quantity…

Q: Explain Potential Misstatements- Inventory/ Cost of Goods Sold and the description of misstatements…

A: Internal control is a procedure for insuring that an organization's objectives in operational…