shipments Archives - Essay Quoll

During your observation of the inventory count in the main warehouse, you found that most of the prenumbered tags that had been incorrectly filled out are being de- stroyed and thrown away. What is the significance of this procedure and what action should you take?

Posted on February 18, 2023 by Assessments

Latner Shoe Distributor Company maintains a large portion of the shoe merchandise in 10 warehouses throughout the eastern United States. This ensures swift delivery service for its chain of stores. You are assigned alone to the Boston warehouse to observe the physical inventory process. You encountered the following situations during the December 31, 2019, physical […]

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” response to a question indicates a possible internal control, whereas a “no” indicates a potential deficiency. 1. Does the […]

Examine sales invoices for consignment sales and other shipments for which control has not been transferred.

Posted on February 12, 2023 by Assessments

Test of Details of Balances,Test of Control, or Substantive Test of Transactions Audit Procedure 1. Confirm accounts receivable ending balances and sales terms, such as right of return and consignment arrangements. 2. Review sales returns after the balance sheet date to determine whether any are ap- plicable to the current year. 3. Compare dates on […]

Design a random selection plan for selecting the sample from the population, using either systematic sampling or computer generation of random numbers. Use the sample size determined in part b. If you use systematic sampling, use a random starting point of 11932.

Posted on February 11, 2023 by Assessments

Lenter Supply Company is a medium-sized distributor of wholesale hardware supplies in the central Ohio area. It has been a client of yours for several years and has instituted excellent internal controls for sales at your recommendation. In providing control over shipments, the client has prenumbered “warehouse removal slips” that are used for every sale. […]