A client maintains perpetual inventory records in quantities and in dollars. If the assessed control risk is high, an auditor would probablya. Apply gross profit tests to ascertain the reasonableness of the physical counts.b. Increase the extent of tests of controls relevant to the inventory cycle.c. Request the client to schedule the physical inventory count at the end of the year.d. Insist that the client perform physical counts of inventory items several times during the year.

Q: Which of the following test controls most likely would help assure an auditor that goods shipped are…

A: In order to test the effectiveness of the control so as to detect the material misstatement, an…

Q: In conducting year-end inventory counts, your audit team is debating the impact of the client's…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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: For each of the accounts balances and associated assertions below, select the audit procedure from…

A: Auditing procedures are those which are step by step followed by the auditor in evaluating the…

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: In the auditor's perspective, what is the ideal timing of the inventory count procedures? * A.…

A: Inventory Count Procedure - Inventory count procedure includes checking of financial records with…

Q: From the auditors’ point of view, inventory counts are more acceptable prior to the year-endwhena.…

A: Inventory Count:   The procedure of physically counting or verifying the inventory numbers and…

Q: Which of the following procedures would an auditor most likely perform in searching for unrecorded…

A: Account payable  means the amount owed by business to outsider for the goods received and services…

Q: Which of the following audit procedures is the best test of the accuracy, valuation and allocation…

A: An inventory audit is an audit where an auditor cross-checks the inventory records with the…

Q: attendance of the auditors during the physical inventory coun

A: Answered:

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: PART 1: Identify the assertions for each of the following substantive procedures: (a) Review the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: When auditing merchandise inventory at year-end, the auditor performs audit procedures to obtain…

A: Goods received on consignment shall not be included in the inventory of consignee.

Q: When auditing merchandise inventory at year-end, the auditor performs audit procedures toensure that…

A: option B) Existence

Q: When auditing merchandise inventory at year-end, the auditor performs audit proceduresto obtain…

A: Given information is: When auditing merchandise inventory at year-end, the auditor performs audit…

Q: An auditor is likely to perform each of the below procedures to obtain evidence regarding the…

A: Audit  Contrary to unfavorable opinions, scope restrictions or the presence of significant…

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: 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: Which of the following procedures would best prevent or detect the theft of valuable items from an…

A: Definition:

Q: Which of the following audit procedures is a test of control?

A: The audit is the process of the official inspection of the books of accounts of a company. There are…

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: 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: Which of the following audit procedures would an auditor most likely perform to test controls…

A: An auditor must check the shipping documents that have not been recorded in sale journal to conform…

Q: A client erroneously recorded a large purchase twice. Which of the following internal accounting…

A: Internal control measures are those ways and measures which helps in achievement of objectives of…

Q: State the points of concern in your report to management with respect to the control issues and…

A: Auditing work is done by the auditors on the company’s financial statements in which all the things…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.