inventory Archives - Page 2 of 7

Does the receiving department prepare prenumbered receiving reports and account for the numbers periodically for all inventory received, showing the description and quantity of materials?

Posted on February 18, 2023 by Assessments

Items 1 through 8 are selected questions typically found in questionnaires used by auditors to obtain an understanding of internal control in the inventory and warehousing cycle. In using the questionnaire for a client, a “yes” re- sponse to a question indicates a possible internal control, whereas a “no” indicates a po- tential deficiency. 1. […]

As part of the current audit, the auditor begins performing substantive tests on a client’s inventory. To test the valuation, allocation, and accuracy assertion, the audi- tor should perform all of the following procedures except for:reviewing direct labor rates and testing the computation of the standard over- head rates used.

Posted on February 18, 2023 by Assessments

The following questions deal with internal controls in the inventory and warehousing cycle and tests of details of balances for inventory. Choose the best response. © 2018 DeVry/Becker Educational Development Corp. Used with permission. All rights reserved. Chapter 21 / AUDIT OF THE INVENTORY AND WAREHOUSING CYCLE 721 a. Alpha Company uses its sales invoices […]

Evaluate the importance of each of these deficiencies and state its effect on the auditor’s observation of inventory.

Posted on February 18, 2023 by Assessments

Explain the relationship between the acquisition and payment cycle and the inventory and warehousing cycle in the audit of a manufacturing company. List several audit procedures in the acquisition and payment cycle that support your explanation. 21-2 (OBJECTIVE 21-3) Many auditors assert that certain audit tests can be significantly reduced for clients with adequate perpetual […]

Integrate the various parts of the audit of the inventory and warehousing cycle.

Posted on February 18, 2023 by Assessments

INTEGRATION OF THE TESTS Integrate the various parts of the audit of the inventory and warehousing cycle.

Explain why a proper cutoff of purchases and sales is heavily dependent on the physical inventory observation. What information should be obtained during the physical count to ensure that cutoff is accurate?

Posted on February 18, 2023 by Assessments

1. Explain why a proper cutoff of purchases and sales is heavily dependent on the physical inventory observation. What information should be obtained during the physical count to ensure that cutoff is accurate? 2. A client applies manufacturing overhead to inventory on the basis of $3.47 per direct labor hour. Explain how the auditor will […]

Design and perform physical observation audit tests for inventory.

Posted on February 18, 2023 by Assessments

PHYSICAL OBSERVATION OF INVENTORY Design and perform physical observation audit tests for inventory.

State whether the merchandise should be included in the client’s inventory.

Posted on February 18, 2023 by Assessments

In an annual audit at December 31, 2019, you find the following transactions near the closing date: 1. Merchandise costing $625 was received on December 28, 2019, and the invoice was not recorded. You located it in the hands of the purchasing agent; it was marked “on consignment.” 2. A packing case containing products costing […]

In auditing a manufacturing entity, which of the following procedures would an auditor most likely perform to determine whether slow-moving, defective, and obsolete items included in inventory are properly identified?

Posted on February 18, 2023 by Assessments

The following questions deal with internal controls in the inventory and warehousing cycle and tests of details of balances for inventory. Choose the best response. © 2018 DeVry/Becker Educational Development Corp. Used with permission. All rights reserved. Chapter 21 / AUDIT OF THE INVENTORY AND WAREHOUSING CYCLE 721 a. Alpha Company uses its sales invoices […]

Give the reasons why inventory is often the most difficult and time-consuming part of many audits.

Posted on February 18, 2023 by Assessments

1. Give the reasons why inventory is often the most difficult and time-consuming part of many audits. 2. State what is meant by cost accounting records and explain their importance in the conduct of an audit.

Explain the five parts of the audit of the inventory and warehousing cycle.

Posted on February 18, 2023 by Assessments

PARTS OF THE AUDIT OF INVENTORY Explain the five parts of the audit of the inventory and warehousing cycle.

Essay Quoll

Tag: inventory

Does the receiving department prepare prenumbered receiving reports and account for the numbers periodically for all inventory received, showing the description and quantity of materials?

Evaluate the importance of each of these deficiencies and state its effect on the auditor’s observation of inventory.

Integrate the various parts of the audit of the inventory and warehousing cycle.

Explain why a proper cutoff of purchases and sales is heavily dependent on the physical inventory observation. What information should be obtained during the physical count to ensure that cutoff is accurate?

Design and perform physical observation audit tests for inventory.

State whether the merchandise should be included in the client’s inventory.

In auditing a manufacturing entity, which of the following procedures would an auditor most likely perform to determine whether slow-moving, defective, and obsolete items included in inventory are properly identified?

Give the reasons why inventory is often the most difficult and time-consuming part of many audits.

Explain the five parts of the audit of the inventory and warehousing cycle.