For the following activity related to inventory, which financial statement assertion is it most directly concerned...
- For the following activity related to inventory, which financial statement assertion is it most directly concerned with?
Checking inventory warehouse for items on consignments (goods being sold for another party).
- Completeness
- Rights and obligations
- Existence
Homework Answers
Checking of inventory warehouse for items on consignment is most directly concerned with c. "Existence" assertion.
The completeness of transaction can't be checked only by going to warehouse.
Further Rights and obligations can not ascertained by physically checking the inventories.
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For the following activity related to inventory, which
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Reply as to whether each of the following comments relating to
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le plainin evidential matter in support of financial statement assertions, the auditor develops specific audit chiectives in light of those assertions. Audit procedures are then selected to accomplish audit objectives. Required: Your client is Hillmart, a retail department store that does no production. For each specific inventory audit obiective listed below select the most closely related financial statement assertion and the most appropriate audit procedure, FL nancial statement assertions and audit procedures may be selected once, more than once, or...
Stenton to Management assertions Listed below are various management assertions related to inventory and cost of sales. Match the management assertion that is most likely being tested. A. Existence and Occurrence B. Rights and Obligations C. Completeness D. Valuation or Allocation E. Presentation and Disclosure 1. Recorded inventory exist. _2. All inventory have been recorded 3. Inventory are recorded at the correct amounts. 4. All cost of sales transactions have been recorded. _5. Recorded cost of sales transactions have occurred....
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Reply as to whether each of the following comments relating to
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incorrect.
Correct/Incorrect Statement Inventory items "consigned in" should be included in the client's inventory totals. With strong internal control an inventory count may be performed prior to year-end. Generally accepted auditing standards require that the auditor be present at each location the client maintains inventory. Auditors must count all inventory items during the inventory count. The inventory of a manufacturing...
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