Which of the following is least likely to be among the auditors objectives in the audit of inventories and cost of goods sold Show
Establish that the client includes only inventory on hand at year-end in inventory totals The receiving department is least likely to be responsible for the Preparation of a shipping document The document issued by a common carrier acknowledging the receipt of goods and setting forth the provisions of the transportation agreement is the .Which of the following should be included as part of inventory costs of a manufacturning company? Direct Labor Raw Material Factory Overhead Direct labor Raw Material Factory overhead The organization establisheed by Congress to narrow the options in cost accounting that are avaiable under generally accepted accounting principles is the Cost Accounting Standard Board When a primary risk related to an audit is possible overstated inventory, The assertaion most directly related is Instead of taking a physical inventory count on the balance-sheet date, the client may take Physical counts prior to the year end if internal control is adequate and Well kept records of perpetural inventory are maintained. The auditor's analytical procedure will be facilited if the client Uses a standard cost system that produces variance reports When perpetual inventory records are maintained in quantities and in dollars, and internal control over inventory is weak the auditior would probably Want the client to schedule the physical inventory count at the end of the year. Which of the following is the best audit procedure for the discovery of damaged merchndise in a client ending inventory Observe merchandise and raw material during the clients physcial inventory taking.. PcPherson COrp does not make an annual physical count of year-end inventories, but isntead makes weekly test counts on the basis of a statistical plan. DUring the year, Sara Mullins, CPA, observes such counts as she sems necesary and is able to satisfy herself as to the reliability of the client;s procedures. In reporting on the results of her examination, Mullins: 1. Can issure an unqualifies opinion without disclosing that she did not observe year-end
inventories. 1. Can issure an unqualifies opinion without disclosing that she did not observe year-end inventories The primary objective of a CPA's observation of a client's physical inventory count is to: 1. Discover whether a client has counted a particular inventory item or group of items. 2. Obtain direct knowledgte that the inventory exists and has been properly counted. What are the audit procedures for inventory?Some common inventory audit procedures are:. ABC analysis. An ABC analysis includes grouping different value and volume inventory. ... . Analytical procedures. ... . Cut-off analysis. ... . Finished goods cost analysis. ... . Freight cost analysis. ... . Matching. ... . Overhead analysis. ... . Reconciliation.. Which of the following is true about the auditors observation of the client's physical inventory group of answer choices?Which of the following is true about the auditors' observation of the client's physical inventory? The auditors should evaluate the adequacy of the client's counting procedures.
Which of the following audit procedures is best to perform to determine that company legally owns inventories?To best ascertain that a company has properly included merchandise that it owns in its ending inventory, the auditors should review and test the: Purchase cutoff procedures. Purchase cutoff procedures should be designed to test whether all inventory: Owned by the company was recorded.
How do you audit inventory checklist?How to Audit Warehouse Inventory (with Checklist). Define your objectives.. Conduct warehouse inventory counts.. Observe warehouse operations.. Interview key warehouse employees.. Synthesize inventory data.. Evaluate the inventory audit results.. |