Lily, a new auditor in an electronics manufacturing company, is reviewing the appropriateness of the minimum quantity level of inventory established by a department. Which of the following would Lily be least likely to consider? Group of answer choices Area/size of the warehouse where the inventories are stored. Stockout costs, including lost customers. The potential for obsolescence of inventory items. Seasonal variations in forecasting inventory demand.

Q: Assume you're the assistant controller at a bookstore that's run by an independent bookseller.…

A: As an assistant controller it should be recognized which inventory control technique should be used.…

Q: Identify the type of audit evidence used for each of the audit procedure above. Explain TWO (2)…

A: Audit evidence are the evidence an auditor collects while doing procedures to reach on a conclusion.

Q: Following are audit procedures commonlyperformed in the inventory and warehousing cycle for a…

A: Audit procedure:   Audit procedures are used by auditors to determine the quality of financial…

Q: In conducting year-end inventory counts, your audit team is debating the impact of the client's…

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

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: State whether the following statements are true with reasons: Safety stock increases as demand…

A: Business needs various type of material in its stock. For every order, some costs needs to be…

Q: 7. If there is an association between an INVENTORY class and a SUPPLIERS class, which of the…

A: Inventory: Stocks of raw materials, work-in-progress (WIP), finished goods, and spare parts and…

Q: You are requested by a client on September 28 to prepare an insurance claim for a theft loss that…

A: Calculation of Gross profit Net sales = 50% + COGS Let COGS = X  51000 = 0.5X  + X X = 51000/1.5 =…

Q: hich of the following would be a red flag that internal auditors should look at for the possibility…

A: Controller is responsible all accounting matters and he is responsible for the cash and payments.

Q: State which of the following inventory methods would best attain the goals of management. Indicate…

A: Since you have asked multiple questions, we answered 3 questions. To get the answer to all kindly…

Q: Triple Creek Hardware Store currently uses a periodic inventory system. Kevin Carlton, the owner, is…

A: Control over inventory is a technique whereby the inventory is safeguarded as soon as the order of…

Q: Concept Integration. Your appliance manufacturingcompany recently implemented a just-in-time…

A: Just-in-time (JIT) is an inventory management technique which aims to minimise handling cost of the…

Q: Which of the following audit procedures is the best test of the accuracy, valuation and allocation…

A: An inventory audit is an audit where an auditor cross-checks the inventory records with the…

Q: Why might a company estimate ending inventory instead of performing a physical count? O The…

A: Ending inventory counting and valuation helps a business to know value of inventory still available…

Q: One of your clients who is engaged in the minimarket has a variety of supplies (heterogeneous…

A: The main reason why auditors checking physical inventory of the client is to make sure the…

Q: A company embarked on a lean initiative and was able to significantly reduce of levels of inventory.…

A: Lean Inventory Management is a method of redefining the ways a company handles its supply chain and…

Q: 2. What piece of information gained during the understanding of the inventory process would be LEAST…

A: Inventory Process The practice of controlling, storing, and keeping track of your inventory items is…

Q: What internal control procedure(s) would provide protection against the following threats?  a.…

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

Q: Which of the following is an advantage of the periodic inventory system? Group of answer choices…

A: The periodic inventory system is a method of inventory valuation, where inventory is valued at the…

Q: A master production schedule is most likely to be useful in O identifying erroneous journal entries.…

A: Solution: A master production schedule is the prepared by company to estimate its production for the…

Q: perpetual inventory updating? Can you present a persuasive argument for the benefits of perpetual?…

A: Periodic Inventory System vs Perpetual Inventory System Periodic Inventory system refers to the…

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: Required: An auditor is trying to figure out if the inventory at an electronics store is obsolete.…

A: Inventory obsolescence refers to the condition where goods held in inventory become outdated, no…

Q: What might be a valid reason for increase in inventory cost. Assuming that fraud is being committed,…

A: Inventory can be defined as the main product for the retail business entity. It is the main source…

Q: For each of the audit procedures listed below state the primary ‘Assertion’ and the related…

A: Audit Assertion Financial statement account 1 Review and test the procedures for identifying…

Q: The gross profit method of estimating inventory would NOT be useful when a. a periodic system is…

A:

Q: The flowchart below illustrates two alternative inventory ordering methods. Answer part 1 to 3 based…

A: The above-mentioned inventory ordering alternatives are used by organizations as per their order…

Q: ts) An auditor recently asked an accounting manager to perform a LCM test on a batch of inventory.…

A: Valuation of Inventory: The lower of cost or market (LCM) approach stipulates that when valuing a…

Q: The perpetual method of accounting for inventory: Is likely to be less expensive to maintain than a…

A: The perpetual inventory method is an accounting approach where a company continuously tracks and…

Q: Which of the following statements is false? Explain Why?? a. It is the best practice to verify…

A: Intra company transfer represents the transfer of the inventory from one department to another…

Q: A client maintains perpetual inventory records in quantities and in dollars. If the assessed control…

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

Q: What is the primary reason we perform physical inventory observations? A. To obtain sufficient…

A: Inventory : It is the stock of raw material work in process and finished goods Kept in the store for…

Q: When inventory items have price movements in excess of 50% (considered material), how does this…

A: As per AICPA, "Inherent risk is the risk of material misstatement assuming no related controls,…

Q: Which of the following is an internal control weakness for a company whose inventory of supplies…

A: Internal control is a mechanism or procedure that the company implements so that the integrity of…

Q: Sandra: We are beginning our audit of Imex and have prepared ratio analyses to determine if there…

A: For accounting purposes, Inventory turnover is a measure of how efficiently the company is utilizing…

Q: Need Help on the following question. Question #1 You have been hired by the CEO of a…

A: Inventory: The goods held by organization for using it captively for production of goods and…

Q: Management decided to undertake a physical inventory count in resolving a perceived weakness in the…

A: In case of trading and manufacturing businesses, inventory is one of the most important part of the…

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.