Why is it necessary for the auditor to make tests of the client's inventory counts?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Modern Auditing

ISBN: 9780471542834

5th Edition

Authors: Walter Gerry Kell, William C. Boynton, Richard E. Ziegler

See More Books

Question Posted: May 04, 2024 11:01 PM

See More Questions

Ghost Goods: How to Spot Phantom Inventory What auditors have to know to uncover phony figures. BY JOSEPH T. WELLS June 1, 2001 Journal of Accountancy ust a hint of inventory fraud can be a...
Multiple Choice Questions Select the best answer for each of the following questions. Explain the reasons for your selection. a. LAN is the abbreviation for: (1) Large Area Network. (2) Local Area...
Required a. Use professional judgment in deciding on the preliminary judgment about materiality for earnings, current assets, current liabilities, and total assets. Your conclusions should be stated...
The jet plane starts from rest at s = 0 and is subjected to the acceleration shown. Determine the speed of the plane when it has traveled 1000 ft. Also, how much time is required for it to travel...
Cellular Labs will invest $150,000 in a project that will not begin to produce returns until after the third year. From the end of the 3rd year until the end of the 12th year (10 periods), the annual...
Evaluating why businesses should be ethical from a practical and normative view.
Energy use: Use the data in Exercise 7 for the following. a. Compute a point estimate for the mean energy use for families with an income of $50,000. b. Construct a 95% confidence interval for the...
Gila Corporation earned $2,650,000 during 2014. The company had an average of 520,000 shares of common stock outstanding. The average market price of common stock was $32 per share during the year....
Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers--the number of cruises and the number of passengers--that...
What procedures are required when inventories stored in a public warehouse are material?
What alternative procedures are available to the auditor when he is unable to observe (a) the ending inventory and (b) the beginning inventory?
Suppose a BMW 745iis priced at $57,750 in New York and 48,387 in Berlin. In which place is the car more expensive if the spot rate is $1.1935/?
Anita and Bonita have been roommates for the past two years while they've been in graduate school. Now that they're graduating, they are each planning to move to different cities. Their one joint...
To what extent are business ethics assumed, or taken for granted, by people in businesses?
Empowered by what he has learned in this class about gender, Brady makes a friendly wager with his girfriend, Marlisa: "I bet I can guess how the men and women at the next table will behave during...
In Exercises 29 and 30, find the probabilities and indicate when the "5% guideline for cumbersome calculations" is used. 29. Medical Helicopters In a study of helicopter usage and patient survival,...
Introduction to Internetworking Project 1: Ctrl-Alt-Del Inc. INTRODUCTION You have accepted a contract to participate in the design of the network infrastructure of a company called Ctrl-Alt-Del Inc....
Use the balance sheet and income statement below to construct a statement of cash flows for 2016 for Clancy's Dog BiscuitCorp. Clancy's Dog Biscuit Corporation Balance Sheet as of December 31, 2015...
What are multinational corporations (MNCs) and what economic roles do they play?
THE CONTAINER HAS BECOME A DOMINANT MODE OF GLOBAL FREIGHT TRANSPORTATION. EXPLAIN THE MAIN REASONS WHY.
ROSS is a popular discount retail chain. Please download their most recent Annual Report and share a couple of interesting items found in the report. Ideas include their Net Income trend, the type...
Novak Corp., which uses IFRS, signs a 4-year, non-cancellable lease agreement to lease equipment from Labelle Ltd. The following information concerns the lease agreement. 1. The equipment's fair...

Why is it necessary for the auditor to make tests of the client's inventory counts?

Question:

Step by Step Answer:

Auditors perform tests of a clients inventory counts for several reasons Accuracy Verification Audit...View the full answer

Modern Auditing

Students also viewed these Business questions