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: 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: Indicate the effects of inventory errors on the financial statements

A: Solution- 1-A merchandising company must be sure that it has properly valued its ending inventory.…

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: The following account balances were provided by Kate's Consulting Company as of December 31, 2022.…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

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: The following question pertain to the financial sta

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

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: 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: 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: Discuss how a change to the LIFO method of inventory valuation is handled when it is impracticable…

A:

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: 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: Inquiries of warehouse personnel concerning possible obsolete inventory items provide assurance…

A: The value of inventory, the lower of cost and net realizable value, and obsolete items are among…

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…

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.