From the auditors’ point of view, inventory counts are more acceptable prior to the year-endwhena. Internal control is weak.b. Accurate perpetual inventory records are maintained.c. Inventory is slow moving.d. Significant amounts of inventory are held on a consignment basis

From the auditors’ point of view, inventory counts are more acceptable prior to the year-endwhena. Internal control is weak.b. Accurate perpetual inventory records are maintained.c. Inventory is slow moving.d. Significant amounts of inventory are held on a consignment basis

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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Concept explainers

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.

Question

From the auditors’ point of view, inventory counts are more acceptable prior to the year-end
when
a. Internal control is weak.
b. Accurate perpetual inventory records are maintained.
c. Inventory is slow moving.
d. Significant amounts of inventory are held on a consignment basis

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None
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