Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When performing procedures to test assertions about purchases, an auditor vouches a sample of entries in the voucher register to the supporting documents. Which assertion

image text in transcribed
When performing procedures to test assertions about purchases, an auditor vouches a sample of entries in the voucher register to the supporting documents. Which assertion would this procedure most likely support? (a) Completeness. (b) Existence or occurrence. 4. (c) (d) Rights and obligations. Valuation or allocation. 5. To gain assurance that all inventory items in a client's inventory listing schedule are valid, an auditor most likely would vouch: (a) (b) (c) Inventory tags noted during the auditor's observation to items listed in the inventory listing schedule. Inventory tags noted during the auditor's observation to items listed in receiving reports and vendors' invoices. Items listed in the inventory listing schedule to inventory tags and the auditor's recorded count sheets. Items listed in receiving reports and vendors inventory listing schedule. invoices to the An auditor most likely would analyze inventory turnover rates to obtain evidence concerning management's assertions about: (a) Existence or occurrence. (b) Rights and obligations. (c) Presentation and disclosure. (d) Valuation or allocation. 6. 7. Which of the following audit procedures most likely would provide assurance about a manufacturing entity's inventory valuation? (a) Testing the entity's computation of standard overhead rates. (b) Obtaining confirmation of inventories pledged under loan (c) (d) agreements. Reviewing shipping and receiving cutoff procedures for inventories. Tracing test counts to the entity's inventory listing. 8. The primary audit objective regarding the purchase of materials by the client (a) Determine the reliability of financial reporting by the purchasing (b) (c) (d) function. Observe the annual physical count. Verify that materials paid for are on hand. Investigate the recording of unusual transactions regarding materials

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost-Benefit Analysis

Authors: E.J. Mishan, Euston Quah

6th Edition

1138492752, 978-1138492752

More Books

Students also viewed these Accounting questions