An auditor usually traces the details of the test counts made during the observation of physical inventory counts to a final inventory compilation. This audit procedure is undertaken to provide evidence that items physically present and observed by the auditor at the time of thephysical inventory count area. Owned by the client.b. Not obsolete.c. Physically present at the time of the preparation of the final inventory schedule.d. Included in the final inventory schedule.

Q: Q. If the auditor traces a sample of receiving reports to the inventory records, the auditor is…

A: The objective of the question is to determine whether the statement is true or false. The statement…

Q: When verifying debits to the perpetual inventory records of a nonmanufacturing company, auditors…

A: Perpetual Inventory Records:   A process of accounting that constantly updates its records with…

Q: List the eight balance-related audit objectives in the verificationof the ending balance in…

A: Balance related audit objectives helps auditors to accumulate enough information and evidences to…

Q: If the auditor conducts test of the inventory controls at an interim date, is it appropriate to…

A: As a part of audit procedure test of controls are used to test the effectiveness of a control used…

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: In which of the following situations would observation not provide the most compelling audit…

A: Introduction:- Audit evidence includes all of the information used by the auditor to support the…

Q: Explain whether or not analytical review procedures would be sufficient for the audit of the…

A: Auditing is the examination and verification of the financial statements prepared by the entity and…

Q: A typical substantive procedure for inventory balance and purchase transactions may include…

A: The question is related to the Substantive audit procedures. The Substantive audit procedures are…

Q: attendance of the auditors during the physical inventory coun

A: Answered:

Q: Which of the following is an analytical procedure? a. Analysis of significant ratios and trends b.…

A: Analytical  procedures are performed to evaluate the financial information.

Q: In an audit of inventories, an auditor would most likely verify that: a. All inventory owned by the…

A: Explanations:- During the inventory audit, auditor observe that financial records match a company's…

Q: Which of the following is a substantive test in relation to completeness? a. Inspect physical…

A: Inspect physical inventory, checking from inventory records to physical stock is an Audit assertion…

Q: The following question pertain to the financial sta

A: substantive audit procedure are processes, steps, tests performed by auditors, which creates…

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

A: option B) Existence

Q: The auditor computed inventory turnover and compared it to prior years.  This substantive test…

A: Auditing inventory refers to cross-checking the physical inventory with the inventory reported in…

Q: An auditor discovered the following matters while performing tests of controls: 2.A purchase of raw…

A: a)Control - Enforcing clear record-keeping and documentation procedures.

Q: when the auditor Watch employees count inventory to determine whether company procedures are being…

A: Ans. An auditor carries out various audit procedures like observation, inspection, confirmation,…

Q: 1)Which of the following is not an audit procedure for inventories? a)Review cut-off of inventory…

A: The objective of the first question is to identify the option that is not an audit procedure for…

Q: Which of the following best describes the reason that the auditors record their inventory test…

A: Working paper is the document prepared in the process of Audit. Working paper are prepared by…

Q: You are testing inventory.  You determined that inventory exists, nothing is missing from inventory,…

A: The following are some examples of inventory risks: Due to the difficulty of valuing inventory, it…

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: The audit objective that all journal entries were included in the financial statements is related to…

A: These assertions are made by the management. These are the claims regarding certain aspects of the…

Q: Analyze some common internal controls over inventories. Explain the significant inherent risks…

A: Introduction: Depreciation is an accounting procedure that distributes the cost of an item over its…

Q: The accounts in the working trial balance are usually the summary accounts to appear in the…

A: A trial balance is a bookkeeping worksheet in which the balance of all ledgers are compiled into…

Q: 3. Allocation and valuation. 4. Understandability and classification. 1, 2.

A: Financial statements refer to the collection of all the balance sheets, income statements, etc to…

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: Explain the accounting treatment of material inventory errors discovered in an accounting period…

A: Materials inventory: Material inventories are the primary materials which are used in the…

Q: Required information Potential Misstatements in the Auditing of Inventory Read the overview below…

A: As inventory is an integral part of balance sheet of any entity mainly manufacturing businesses and…

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.