Determine what report (unqualified, qualified, adverse, or disclaimer) is appropriate Your client uses a non-GAAP inventory method to determine inventory valuation but otherwise the financial statements are prepared according to GAAP.  You agree with management that the using  this inventory method is appropriate and the financial statements, taken as a whole, are fairly stated. Group of answers: Qualified Opinion with explanatory paragraph Adverse Opinion Unqualified Opinion with additional explanatory paragraph Disclaimer - independence explanation Unmodified Unqualified Opinion Disclaimer - scope limitation explanation Unqualified Opinion with except for paragraph Qualified Opinion with Except for paragraph

Q: am.402.

A: The objective of the question is to understand the impact of understating ending inventory on the…

Q: portion of the raw materials inventory was misclassified as finis f the following management…

A: In the auditing process, assertions are claims that determine that financial statements are genuine…

Q: Explain what is meant by the Internal Revenue Service conformity rule with respect to the inventory…

A: Internal Revenue Service conformity rule is when prices rise and inventory quantities are not…

Q: Delaney Humphrey was explaining the importance of documentary evidence. Which assertion was she…

A: The audit is the detailed process of checking and verifying books of accounts and financial…

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 procedure is designed to prevent the company from ordering unnecessary items?…

A: D) Approval of purchase requisitions is the procedure designed to prevent the company from ordering…

Q: when the company paid the wages payable in the next period the wages payable A/C will be in the…

A: Solution Note : As per the Q&A guideline we are required to answer the first question only .…

Q: Explain issues that analysts should consider when examining a company’s inventory disclosures and…

A: Inventory Disclosure: Inventory disclosure is useful for management to evaluate inventory…

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: Whether or not an item has been physically delivered to the buyer is the main criteria to determine…

A: Revenue recognition is one of the important accounting principle that is being used in business.…

Q: During the year, TRC Corporation has the following inventory transactions. Number of Unit Cost Date…

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

Q: Which of the ff needs an adjustment to the A/R account of ABS company? a. goods in transit of the…

A: Under the FOB destination point sale, the seller can record its sales only after the buyer takes the…

Q: The following question pertain to the financial sta

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

Q: according to which section (s) in the Accounting Act the inventory is assessed. Explain your reasons…

A: Inventory includes the goods available for sale in the normal course of business or the finished…

Q: The specific identification inventory method should be used when the inventory consists of…

A: Specific identification inventory method: It is a method used to value the inventory. It calculates…

Q: When going concern assumption is appropriate, Auditor's opinion should be: a. disclaimer opinion b.…

A: Going Concern assumption- In this assumption, it is assumed that entity will run its business for…

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: Which of the following is not utilized by lenders to control inventory that is being used in…

A: Trust receipts are not utilised by lenders.

Q: Do you agree with the following statements? Express your opinion on each statement.

A: 1: This statement is correct  This can be explained with the help of example: Suppose closing stock…

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: Required: Match the following statements 1-10 the appropriate code letter A-C Statements 1-10 are…

A: In order for the financial statements to provide accurate and more pertinent data on the impacts of…

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: A REQUIRED: IDENTIFY THE ASSERTION[S] RELATED TO EACH AUDIT PROCEDURE ASSERTION[S] E=existence…

A: Auditing:- An audit is the referred as the physical examination of books of accounts. This can be…

Q: Which method tracks the actual physical flow of goods and each item of inventory is marked, tagged,…

A: The correct option in no. 1 question is d. Specific identification method

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 a company changes its inventory method to LIFO, an exception is made for the way accounting…

A: Explain the difference in the accounting treatment of a change to the LIFO inventory method from…

Q: The use of inventory information to improve stock control procedures is an example of intangible…

A: Inventory refers to the goods and accoutrements  held by a business for the purpose of resale,…

Q: s) Which of the following is NOT a benefit of the Specific Identification method of tracking…

A: The specific identification method represents that the inventory is valued and tracked on an…

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: State the assertion (existence, occurrence, rights & ownership, completeness, valuation/accuracy,…

A: a)Cut off assertion.should be applied ... b) valuation... C)Completeness.. D) classification.. E)…

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: Briefly explain the "accrual basis assumption" and why financial statements are prepared under this…

A: As per our protocol we provide solution to the one question only but as you have asked multiple…

Q: KYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three…

A: The coefficient of determination, or R square explains how much of variation in one variable…

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.