Inventory audit: An organization may be trading or manufacturing or a service provider. Every type of organization holds some kind of inventories and inventory has the same important as of the blood in the body. Auditors take special care while doing inventory audit because there are high chances of misstatements in inventory transactions. To discuss: The reason why inventory is considered as one of the most complex parts of the audit.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 13, Problem 13.1RQ

To determine

Concept Introduction:

Inventory audit: An organization may be trading or manufacturing or a service provider. Every type of organization holds some kind of inventories and inventory has the same important as of the blood in the body. Auditors take special care while doing inventory audit because there are high chances of misstatements in inventory transactions.

To discuss: The reason why inventory is considered as one of the most complex parts of the audit.

Expert Solution & Answer

Explanation of Solution

Inventory is like blood for any organization and major transactions of an organization belongs to inventories. It is very important for an auditor to make appropriate audit plan for inventory audit. Inventory audit is also one of the most complex parts of the audit because inventory movement does not top even while performing the audit. So it becomes difficult for the auditors to check the amount of inventory when it is ever changing. Another difficulty for inventory is that inventory is placed at different places of the organizations which may create a geographical barrier for the auditor of inventory checking.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

What is information risk when it pertains to auditing?

what is the difference between internal and external audit

What is the difference of Internal Audit from External Audit?

Answer 2

Question

Chapter 13, Problem 13.1RQ

To determine

Concept Introduction:

Inventory audit: An organization may be trading or manufacturing or a service provider. Every type of organization holds some kind of inventories and inventory has the same important as of the blood in the body. Auditors take special care while doing inventory audit because there are high chances of misstatements in inventory transactions.

To discuss: The reason why inventory is considered as one of the most complex parts of the audit.

Expert Solution & Answer

Explanation of Solution

Inventory is like blood for any organization and major transactions of an organization belongs to inventories. It is very important for an auditor to make appropriate audit plan for inventory audit. Inventory audit is also one of the most complex parts of the audit because inventory movement does not top even while performing the audit. So it becomes difficult for the auditors to check the amount of inventory when it is ever changing. Another difficulty for inventory is that inventory is placed at different places of the organizations which may create a geographical barrier for the auditor of inventory checking.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 13, Problem 13.1RQ

To determine

Concept Introduction:

Inventory audit: An organization may be trading or manufacturing or a service provider. Every type of organization holds some kind of inventories and inventory has the same important as of the blood in the body. Auditors take special care while doing inventory audit because there are high chances of misstatements in inventory transactions.

To discuss: The reason why inventory is considered as one of the most complex parts of the audit.

Expert Solution & Answer

Explanation of Solution

Inventory is like blood for any organization and major transactions of an organization belongs to inventories. It is very important for an auditor to make appropriate audit plan for inventory audit. Inventory audit is also one of the most complex parts of the audit because inventory movement does not top even while performing the audit. So it becomes difficult for the auditors to check the amount of inventory when it is ever changing. Another difficulty for inventory is that inventory is placed at different places of the organizations which may create a geographical barrier for the auditor of inventory checking.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 13, Problem 13.1RQ

To determine

Concept Introduction:

Inventory audit: An organization may be trading or manufacturing or a service provider. Every type of organization holds some kind of inventories and inventory has the same important as of the blood in the body. Auditors take special care while doing inventory audit because there are high chances of misstatements in inventory transactions.

To discuss: The reason why inventory is considered as one of the most complex parts of the audit.

Expert Solution & Answer

Explanation of Solution

Inventory is like blood for any organization and major transactions of an organization belongs to inventories. It is very important for an auditor to make appropriate audit plan for inventory audit. Inventory audit is also one of the most complex parts of the audit because inventory movement does not top even while performing the audit. So it becomes difficult for the auditors to check the amount of inventory when it is ever changing. Another difficulty for inventory is that inventory is placed at different places of the organizations which may create a geographical barrier for the auditor of inventory checking.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 13, Problem 13.1RQ

To determine

Concept Introduction:

Inventory audit: An organization may be trading or manufacturing or a service provider. Every type of organization holds some kind of inventories and inventory has the same important as of the blood in the body. Auditors take special care while doing inventory audit because there are high chances of misstatements in inventory transactions.

To discuss: The reason why inventory is considered as one of the most complex parts of the audit.

Expert Solution & Answer

Explanation of Solution

Inventory is like blood for any organization and major transactions of an organization belongs to inventories. It is very important for an auditor to make appropriate audit plan for inventory audit. Inventory audit is also one of the most complex parts of the audit because inventory movement does not top even while performing the audit. So it becomes difficult for the auditors to check the amount of inventory when it is ever changing. Another difficulty for inventory is that inventory is placed at different places of the organizations which may create a geographical barrier for the auditor of inventory checking.

Answer 6

Chapter 13, Problem 13.1RQ

To determine

Concept Introduction:

Inventory audit: An organization may be trading or manufacturing or a service provider. Every type of organization holds some kind of inventories and inventory has the same important as of the blood in the body. Auditors take special care while doing inventory audit because there are high chances of misstatements in inventory transactions.

To discuss: The reason why inventory is considered as one of the most complex parts of the audit.

Expert Solution & Answer

Explanation of Solution

Inventory is like blood for any organization and major transactions of an organization belongs to inventories. It is very important for an auditor to make appropriate audit plan for inventory audit. Inventory audit is also one of the most complex parts of the audit because inventory movement does not top even while performing the audit. So it becomes difficult for the auditors to check the amount of inventory when it is ever changing. Another difficulty for inventory is that inventory is placed at different places of the organizations which may create a geographical barrier for the auditor of inventory checking.

Answer 7

Chapter 13, Problem 13.1RQ

To determine

Concept Introduction:

Inventory audit: An organization may be trading or manufacturing or a service provider. Every type of organization holds some kind of inventories and inventory has the same important as of the blood in the body. Auditors take special care while doing inventory audit because there are high chances of misstatements in inventory transactions.

To discuss: The reason why inventory is considered as one of the most complex parts of the audit.

Answer 8

Expert Solution & Answer

Explanation of Solution

Inventory is like blood for any organization and major transactions of an organization belongs to inventories. It is very important for an auditor to make appropriate audit plan for inventory audit. Inventory audit is also one of the most complex parts of the audit because inventory movement does not top even while performing the audit. So it becomes difficult for the auditors to check the amount of inventory when it is ever changing. Another difficulty for inventory is that inventory is placed at different places of the organizations which may create a geographical barrier for the auditor of inventory checking.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 13 - Prob. 13.1RQ Ch. 13 - Prob. 13.2RQ Ch. 13 - Prob. 13.3RQ Ch. 13 - Prob. 13.4RQ Ch. 13 - Prob. 13.5RQ Ch. 13 - Prob. 13.6RQ Ch. 13 - Prob. 13.7RQ Ch. 13 - Prob. 13.8RQ Ch. 13 - Prob. 13.9RQ Ch. 13 - Prob. 13.10RQ

Concept explainers

Explanation of Solution

Want to see more full solutions like this?

Chapter 13 Solutions