Question 1

Purchase cutoff procedures should be designed to test whether all inventory:

Accepted Answer

A)  Owned by the company was recorded.
B)  On the year-end balance sheet was carried at lower-of-cost-or-market.
C)  On the year-end balance sheet was paid for by the company.
D)  Owned by the company is in the possession of the company.

Question 2

When the auditors cannot satisfy themselves as to the accuracy of ending inventory and a material misstatement may exist,they normally may still give an unmodified (unqualified)opinion on the client's income statement.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is nota part of the auditors' responsibility regarding a client's count of its inventory?

Accepted Answer

A)  Evaluate condition of inventory.
B)  Determine which counts they will make and which counts the client will make.
C)  Observe compliance with management's instructions for the count.
D)  Make some test counts.

Question 4

Observation of a client's inventory is a presumptively mandatory audit procedure.
a.What part should the auditors play in planning the physical inventory?
b.Describe the procedures performed by the auditors during their observation of a client's physical inventory.
c.Why do the auditors document their inventory test counts in their working papers?

Accepted Answer

a.The auditors should review the client'...

Exam 12: Inventories and Cost of Goods Sold

When the auditors cannot satisfy themselves as to the accuracy of ending inventory and a material misstatement may exist,they normally may still give an unmodified (unqualified)opinion on the client's income statement.

Correct Answer
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Correct Answer
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a.The auditors should review the client'...
View Answer

Which of the following is nota part of the auditors' responsibility regarding a client's count of its inventory?

Correct Answer
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Purchase cutoff procedures should be designed to test whether all inventory:

Correct Answer
verified

Exam 12: Inventories and Cost of Goods Sold

When the auditors cannot satisfy themselves as to the accuracy of ending inventory and a material misstatement may exist,they normally may still give an unmodified (unqualified)opinion on the client's income statement.

Correct AnswerverifiedShow Answer

Correct Answerverifieda.The auditors should review the client'...View AnswerShow Answer

Which of the following is nota part of the auditors' responsibility regarding a client's count of its inventory?

Correct AnswerverifiedShow Answer

Purchase cutoff procedures should be designed to test whether all inventory:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
a.The auditors should review the client'...
View Answer

Correct Answer
verified

Correct Answer
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