The following is a copy of the auditors working paper relating to the cut-off procedures for inventory

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The following is a copy of the auditor’s working paper relating to the cut-off procedures for inventory sales for the client New Millennium Ecoproducts. 


Required 

(a) Why is an auditor interested in whether inventory movements are recorded for the correct date? 

(b) The test described in the working paper focuses on the date of the inventory count and is used to verify inventory balance details. Why is the test also relevant to sales revenue? 

New Millennium Ecoproducts 12/31/2016 $ 000 CLIENT: Period end: EY Currency/unit: F05.1-INVENTORY CUT-OFF (Sales) wor ed

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Auditing A Practical Approach

ISBN: 978-1118849415

2nd Canadian edition

Authors: Fiona Campbell, Robyn Moroney, Jane Hamilton, Valerie Warren

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