hello. can someone help me answer these multiple questions. thank you.
CHAPTER 11: KE 1. Which of the following is not one of the this nt auditor's object verdoing that inventory counted is ower inventory pricing by Verifying that the client his writes of inventory on hand. d. Verifying that all inventory owned by the client is on hand at the yep, the Court Which of the following "ifleventories? by the awwwwinston of inventory valuation directly affects net inous The existence of inventories is inherently difficult to substantiate. d. Inventories are often the largest current asset Which of the following is true about the auditor's observation of the cin's a. The count must be made at year-end. The auditor's observation addresses the existence assertion The auditor should justify any omission of the observation in the and The auditors should evaluate the client's planning of the physed The waditors should make certain that consig The auditers should a man procedures ld evaluate the adequacy of the client's crerat The auditors should take test counts of the client's Inventory. anmoved memos is the best audit procedure for the discover Compare the pereslending inventory corresponding quantities of the price Observe merchandise and raw materials during the client's plea Review the mas Review the management's inventory representation letter for actua atio with the industry , value aseverance that a mazing wodit procedures most likely would . Testing the entity's coming entity's inventory valuation is proper taining confirmation of javen of standard overhead rates " ce inventories pledged under loan agreat Cupter 11 - Substantive Test of Inventories and Cost of Sales c. Reviewing a cutoff procedure for inventories. 7. The client's physical count of invent quantities in the perpetual records. This counwer than the inventory & Purchases. d. Sales due discounts Your client performed the physical count of inventory as of November 30, journal on 12/29/2015, two days before your and days' credit sales in January of the next year, Assuming the client Uses a overstated relating to the year 2015 financial statements b. Inventory. d Accounts receivable. Which of the following is not a procedure that is typically used by the auditors in their examination of a client's goods ion of a client's goods held in the custody of a ining reports on internal control at the warehouse. ponding with the government regulator regarding the aticity of the public warehouse. their inventory test counts in the working papers? To document compliance with generally accepted accounting For use in subsequent audits. . The auditors will usually trace the details of the test counts made during the This andit procedure is undertaken to provide evidence that items Physically present and observed by the auditors at the time of the physical aowned by the client "Physically present at the time of the preparation of the final inventory Included in the final Inventory schedule. nce of Inventory tags, an auditor traces a wimpaccounting for a sequence of inventory heatle of tags to the physical Inventory listing to obtain evidence that all 347 Chapter 11 - Substantive Test of Inventories and Cost of Sales Included in the listing have been comfended in h. Represented by inventors mesresented by inventory tags. a Represented by inventory tags are bona fide. 13. An auditor has accounted for a sequence of inventory gamesnow more to trace information on a representses this procedure relate to may directly? . b. Legality. Valuation termine whether all merchandise for which 4. An auditor performs a test to determine watson for this test consists of the client was billed was received. The population andise received. Receiving report is properly included merchandise the 5. To best ascertain that a company whatis should review and test the: a. Terms of the open purchase orders b. Purchase cutoff procedures. 1. Purchase invoices received on or around year end. 6. Purchase cutall procedures should be designed to test that merchandise is * Has paid for the message client Holds boy possession of the merchandise. Holds the shipping documents for the merchandise issued in the that Tracing copies of computer -prepared sales invoices to copies of the rresponding computer-prepared shipping documents provides evident b. Berries stromers were properly billed. b. Entries in the accounts receivable subsidiary ledger were for sale d. No deplicate shipments withe actually shipped. to customers we're made B. In aediting a manufacturing entity, which of would an auctor least likely perform to determine wowsmi Test the computerme inclu included in inventory are properly identified? b. Tour the manufacturing andand overhead rates. are inventory balances to auction facility. erience and trends. 348 chapter 11 - Substantive Test of Inventories and Cost of Sales 19. A "bill and hold" scheme is most likely to include: a. Shipment of items to a customer beyond what the customer has Recording as sales Items that the compa Billing of items that are held by customers for future revenue production purposes. 1. Selling items at substantial discounts near year-end 0. To measure how effectively a client employs its assets, an auditor calculate inventory turnover by dividing the average inventory intus b. Operating in d. Gross sales 21. An inventory turnover analysis is useful to the auditor because it may a Inadequacyes in inventory pricing d. The existence of obsolete merchandise. 2. Inquiries of warehouse personnel concerning be spa moving inventory items provide assurance about management's assertion of b. Rights and obligations. & Valuation to Its whites would be most interested in examining the purchase b. Orders. 24. The accuracy of perpetual inventory records may be established, in part. b omparing perpetual inventory records with " Purchase orders vendor payments 25. The auditor tests the quantity of materials charged to work in process a. Cast ledgers. b. Receiving reports. d. Material requisitions
