List and explain the substantive tests of Inventory and give example.

Q: Why is it important to obtain shipping and receiving cutoff information during the inventory…

A: Cut-off Procedures:   The audit procedures applied to separate the transactions from one period to…

Q: FIFO or LIFO

A: Inventory is the current assets reported under the head current assets in the balance sheet of the…

Q: How significant is the inventory as a percentage of total assets? Please answer it in detail and in…

A: Inventory is typically considered an important component of total assets for many businesses, as it…

Q: An item must possess two characteristics to be classified as inventory. What are these two…

A: Definition: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…

Q: your own words, what are the primary differences between impact analysis and inventory analysis?

A: The inventory analysis an important part of decision making because it is associated with many…

Q: The moving average inventory cost flow assumption is applicable to which of the following inventory…

A: Following each inventory purchase, the moving average inventory technique recalculates the average…

Q: Describe the alternative approaches for recording inventory write-downs.

A: Inventory write-down: As per GAAP (Generally Accepted Accounting Principles), the companies are…

Q: What is an ABC analysis with regard to inventory?

A: ABC analysis: ABC analysis is an inventory classification technique used as a basic arrangement…

Q: whats the inventory tracking for this?

A: Goods which are held for the resale by the business and the business deals with such type of…

Q: Which inventory costing method produces a more accurate income statement – FIFO or LIFO? ___________…

A: Lets understand the basics. There are various inventory methods are followed for calculating ending…

Q: Explain which physical units of goods should be included in inventory.

A: Inventory:   It refers to an accounting term used to describe the goods in various stages in the…

Q: Which inventory system provides a better matching of revenue and expenses - Weighted Average, Moving…

A: Following is the answer to given problem

Q: Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.

A: Under LIFO method, Inventory purchased most recently are the first to be sold.

Q: Define beginning inventory and ending inventory

A: The beginning inventory and ending inventory are explained as below,   The Inventory can be defined…

Q: How to do INventory valuation with WAC method. Could you please explain this with an example…

A: Inventory valuation is done by the companies in order to find the value of the inventory that…

Q: Eer tomet ente hente coma omentor 0 ADent

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.

Q: Discuss and explain the major uses of the gross profit method of inventory estimation.

A: Generally  we get gross profit  after trading a/c prepared it means after net sales  minus net…

Q: Write out the formula for the total costs of carrying and ordering inventory, and then use…

A: The formula for the total costs of carrying and ordering inventory and using the formula to derive…

Q: Briefly explain the usefulness of the inventory figure resulting from the application of lower of…

A: Net Realizable Value(NRV) refers to the inventory value which a business entity can realize from…

Q: Describe the differences between an inventory system that uses a set quantity (Q)  and one that uses…

A: In a set quantity inventory system the lot size and the order quantity is fixed, while in a fixed…

Q: For commercial reasons, a weighted average and inventory system from lifo fifo should be considered.

A: The LIFO (Last in, first-out) The LIFO accounting method is used to value inventory. This method is…

Q: York Co. sells one product, which it purchases from various suppliers. York's trial balance at…

A: Requirement 1A : Beginning inventory  $53,900 Add : Purchases $380,600 Less : Purchase…

Q: Define the following assertions for inventory: 1) Existence 2) Completeness 3) Valuation and…

A: Audit Inventory:-It is a process of checking the inventory records in the data with a physical count…

Q: Explain how liquidity measures can be influenced by the inventory cost flow assumption used.

A: Inventory Cost Flow Assumptions means the different techniques of measurement of cost of inventory…

Q: Determine the valuation of the inventory following the measurement at Lower of Cost and Net…

A: The inventory cost are determined as per net realizable value or cost whichever is lower.

Q: Physical counts of inventory: O a. Must be taken at least once a month. O b. Are not necessary under…

A: A physical count of inventory means having an actual count of inventory despite maintaining…

Q: I1. Journalized the following transaction. PERPECTUAL INVENTORY SYSTEM Nov 1 Mr. Tom invested P40,…

A: Perpetual inventory system is that form of inventory system, in which all transactions related to…

Q: Give a detailed definition of "inventory', based on IAS2, Inventories. Use suitable examples to…

A: Inventory is defined as the goods and materials held by a business for sale in the ordinary course…

Q: How do I go about finding the ending inventory using the lifo method?

A: In LIFO method, the inventory received last is despatched first and the ending inventory comprises…

Q: how to caculate desire ending inventory?

A: Inventory means Stock. Ending inventory, defined as the value of  inventory remaining at the end of…

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.