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

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: 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: An auditor most likely would analyze inventory turnover rates to obtain evidence concerning…

A: Inventory turnover rate is the rate which shows how many times a company has sold and replaced it's…

Q: You are preparing to audit the inventory and warehouse cycle of ABC Manufacturing and have the…

A: Inventory refers to the stocks that are held by the company for the resale purpose and to sell in…

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

A: Answer:   Option a

Q: Assume that you are auditing the inventory of Husky Manufacturing Company for the year ended…

A: Since you have asked two questions under a single question, we have solved one problem. To get the…

Q: attendance of the auditors during the physical inventory coun

A: Answered:

Q: When a company's financial statements are audited, the principal element an auditor reviews is the…

A: Audit is the process of verifying and examining the authenticity and accuracy of financial…

Q: Which of the following is an analytical procedure? a. Analysis of significant ratios and trends b.…

A: Analytical  procedures are performed to evaluate the financial information.

Q: Analytical procedures are evaluations of financial information made by a study of plausible…

A: The question is related to Ratio Analysis. The Income Statement and Balance Sheet are given for the…

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

A: Accounts Receivables are those accounts of customers to whom business has made credit sales on…

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: (please answer a, b)

A: Introduction Master file: A group of documents relating to one of the primary topics of an…

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: Parsons Inc. has proposed a change from one inventory accounting method to another for financial…

A: Accounting changes: Accounting changes can be defined as changes in accounting principles,…

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 audit procedures probably would provide the most reliable evidence related to…

A:

Q: The following Specific Balance Related Audit Objective-Sales Cutoff at year-end is proper- isrelated…

A: Answer:   Option A

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: 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: " In our opinion, the financial statements give a true and fair view of the state of the Company's…

A: An auditor is required to verify and check the accuracy of the financial records of the business. He…

Q: An example of sampling for attributes would be estimating the A.Peso value of accounts receivable B.…

A: In the given case an example for attribute sampling will be based on the population of the sample…

Q: During substantive procedures the auditors selected a sample of balances included in the trade…

A: The person or organization that is provided the authority by the law to perform or execute the audit…

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

A:

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: Which of the following timing of inventory count is the best based on the auditor’s point of view…

A: Answer: Concept Control risk               Control risk means risk that the internal control…

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: By conducting which steps, the auditor can obtain sufficient and appropriate audit evidence…

A: Sometimes due to the nature of Business sometimes the inventory held by the business is under the…

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: An auditor selected items for test counts from the client’s warehouse during the physical inventory…

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

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: In connection with the planning phase of an audit engagement, which of the following statements is…

A: Planning of Audit Engagement: An agreement between an auditor and a client in which 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: Assuming that the auditor properly documents receiving reportnumbers as a part of the physical…

A: Cut off procedures are those procedures in which the departments in the business would have their…

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: 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: 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…