6. To verify the existence assertion for inventory, the auditor should trace from the: Please add...
6. To verify the existence assertion for inventory, the auditor should trace from the:
Please add checkmark next to the correct answer(s).
1 inventory master file to the inventory count sheets (or inventory tags).
2 year-end inventory list to the inventory count sheets (or inventory tags).
3 inventory count sheets (or inventory tags) to vendors’ invoices.
4 year-end inventory list to the inventory master file.
5 inventory count sheets (or inventory tags) to the year-end inventory list.
Homework Answers
3 inventory count sheets (or inventory tags) to vendors’ invoices.
Explanation:
Existence assertion means to verify that inventory actually exist. It can be done by Checking inventory count sheets with the vendor's invoice that inventory that inventory was actually purchased.
Add Answer to:
6. To verify the existence assertion for inventory, the auditor
should trace from the:
Please add...
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auditing Part Two: Multiple Choice Questions: (2.5 marks/ question) 1. To test the existence assertion for...
auditing
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To test the existence of inventory (i.e., "sheet to floor"), enter the quantities from the Invent...
To test the existence of inventory (i.e., "sheet to floor"),
enter the quantities from the Inventory Status Report downloaded
from the website for the items indicated on Work Paper 5-2. Some
inventory items selected for review have already been completed.
Please note that the order of the Inventory Status Report and
Inventory Count Tag columns is the reverse of Work Paper 5-1 to
reflect the change in the order of observation (i.e., switching
from "floor to sheet" to "sheet to...
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During year 1 audit of Cellening Co., the auditor performed various procedures relating to inventory. Match...
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Learning objectives addressed by this exercise: Chapter 3-Learning Objectives 4 1. The following are ten various...
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auditing
Part Two: Multiple Choice Questions: (2.5 marks/ question) 1. To test the existence assertion for recorded receivables, an auditor would select a sample from the A) Sales orders file. B) Customer purchase orders C) Accounts receivable subsidiary ledger D) Shipping documents (bill of lading) file. 2. When control risk for the existence assertion is assessed at a high level, which of the Gallerine is a likely effect with respect to the auditors' confirmation of receivables? A) The account balances...
To test the existence of inventory (i.e., "sheet to floor"),
enter the quantities from the Inventory Status Report downloaded
from the website for the items indicated on Work Paper 5-2. Some
inventory items selected for review have already been completed.
Please note that the order of the Inventory Status Report and
Inventory Count Tag columns is the reverse of Work Paper 5-1 to
reflect the change in the order of observation (i.e., switching
from "floor to sheet" to "sheet to...
auditing
7. An auditor has accounted for a sequeno information on a representative number assertion does this procedure relate to most directly A) Completeness. B) Existence. C) Legality. D) Valuation. a sequence of inventory tags and is now going to trace e number of tags to the inventory summary sheets. Which o. Which of the following is not a procedure that typically is used by the auditors in tica 8. Which of the follow examination of a client's goods held...
vided the procedure (1-9) the auditor could implement to test the operating electiveness of the Internal control Select from the option list provided the procedure (1-9) the following situations. Each choice may be used once, more than once, or not at all. 1. Match prenumbered shipping documents with entries in the sales journal. 2. Trace sales invoices to account receivable subsidiary ledger 3. Vouch bill of lading file to approved sales invoices. 4. Observe client comparing receiving quantities, and inspect...
Steven Garcia, an auditor with Knapp CPAs, is performing a review of Sheridan Company s inventory account. Sheridan did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $645.000. However, the following information was not considered when determining that amount. 1. Included in the company's count were goods with a cost of $216,000 that the company is holding on consignment. The goods belang to...
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