Required: An auditor is trying to figure out if the inventory at an electronics store is obsolete. From the list below, identify whether each attribute would be useful for predicting inventory obsolescence or not. Predictive Attributes Inventory location Purchase date Manufacturer Identified as obsolete Sales revenue Inventory color Inventory cost Inventory description Inventory size Inventory type Days since last purchase Predictive?

Required: An auditor is trying to figure out if the inventory at an electronics store is obsolete. From the list below, identify whether each attribute would be useful for predicting inventory obsolescence or not. Predictive Attributes Inventory location Purchase date Manufacturer Identified as obsolete Sales revenue Inventory color Inventory cost Inventory description Inventory size Inventory type Days since last purchase Predictive?

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

Required:
An auditor is trying to figure out if the inventory at an electronics store is obsolete.
From the list below, identify whether each attribute would be useful for predicting
inventory obsolescence or not.
Predictive Attributes
Inventory location
Purchase date
Manufacturer
Identified as obsolete
Sales revenue
Inventory color
Inventory cost
Inventory description
Inventory size
Inventory type
Days since last purchase
Predictive?

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