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a. Identify the type of 220 b. Identify the general balance-related audit procedure. but edi yd noiten audit objective or objectives satisfied by Drenillo nousuk.75 1212000 bns ning situations, each containing two means of

a. Identify the type of 220 b. Identify the general balance-related audit procedure. but edi yd noiten audit objective or objectives satisfied by Drenillo nousuk.75 1212000 bns ning situations, each containing two means of

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Audit Procedures 1. Select a sample of inventory items in the factory warehouse and trace each item to the inventory count sheets to determine whether it has been included and whether the quantity and description are correct. 2. Trace selected quantities from the inventory list to the physical inventory to make sure that it exists and the quantities are the same. 3. Compare the quantities on hand and unit prices on this year's inventory count sheets with those in the preceding year as a test for large differences. 4. Read the footnote disclosures related to the company's accounting policies for valu- ing inventory to make sure the information provided correctly reflects the method used to value inventory. 5. Test the extension of unit prices times quantity on the inventory list for a sample of inventory items, test foot the list, and compare the total to the general ledger. that 6. Send letters directly to third parties who hold the client's inventory, and request they respond directly to the auditors. 17. Examine sales invoices and contracts with customers to determine whether any inom goods are out on consignment with customers. Similarly, examine vendors' invoices and contracts with vendors to determine whether any goods on the inventory listing are owned by vendors. 8. Question operating personnel about the possibility of obsolete or slow-moving inventory. d General Balance-Related Audit Objectives The piClassification Cutoff Detail tie-in Existence Completeness Accuracy Realizable value Rights and obligations 091569 101 Presentation bseu 90 1183 bsau 9000 mort om a. Identify the type of audit evidence used for each audit procedure. b. Identify the general balance-related audit objective or objectives satisfied by each 20 audit procedure. JIST Cavaly 06-0 THE 916 2910 op bas Isiontent to nousulsys.srh to vbuje odi yd noilemm igore nine situations, each containing two means of 11
Transcribed Image Text:Audit Procedures 1. Select a sample of inventory items in the factory warehouse and trace each item to the inventory count sheets to determine whether it has been included and whether the quantity and description are correct. 2. Trace selected quantities from the inventory list to the physical inventory to make sure that it exists and the quantities are the same. 3. Compare the quantities on hand and unit prices on this year's inventory count sheets with those in the preceding year as a test for large differences. 4. Read the footnote disclosures related to the company's accounting policies for valu- ing inventory to make sure the information provided correctly reflects the method used to value inventory. 5. Test the extension of unit prices times quantity on the inventory list for a sample of inventory items, test foot the list, and compare the total to the general ledger. that 6. Send letters directly to third parties who hold the client's inventory, and request they respond directly to the auditors. 17. Examine sales invoices and contracts with customers to determine whether any inom goods are out on consignment with customers. Similarly, examine vendors' invoices and contracts with vendors to determine whether any goods on the inventory listing are owned by vendors. 8. Question operating personnel about the possibility of obsolete or slow-moving inventory. d General Balance-Related Audit Objectives The piClassification Cutoff Detail tie-in Existence Completeness Accuracy Realizable value Rights and obligations 091569 101 Presentation bseu 90 1183 bsau 9000 mort om a. Identify the type of audit evidence used for each audit procedure. b. Identify the general balance-related audit objective or objectives satisfied by each 20 audit procedure. JIST Cavaly 06-0 THE 916 2910 op bas Isiontent to nousulsys.srh to vbuje odi yd noilemm igore nine situations, each containing two means of 11
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