An auditor most likely would analyze inventory turnover rates to obtain evidence concerning management’s balance assertions abouta. Existence.b. Rights and obligations.c. Completeness.d. Valuation and allocation.

An auditor most likely would analyze inventory turnover rates to obtain evidence concerning management’s balance assertions abouta. Existence.b. Rights and obligations.c. Completeness.d. Valuation and allocation.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 6CYBK

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Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

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An auditor most likely would analyze inventory turnover rates to obtain evidence concerning management’s balance assertions about
a. Existence.
b. Rights and obligations.
c. Completeness.
d. Valuation and allocation.

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Audit procedures for items of Financial Statement

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An auditor would vouch inventory on the inventory status report to the vendor’s invoice toobtain evidence concerning management’s balance assertions abouta. Existence.b. Rights and obligations.c. Completeness.d. Valuation
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A B D. REQUIRED: IDENTIFY THE ASSERTION[S] RELATED TO EACH AUDIT PROCEDURE ASSERTION[S] E=existence C-Completeness A=Accuracy Cl=Classification Cu=Cutoff V=Valuation RO-Rights & Obligations Procedure A Compare sales invoices with customer purchase orders B Compare selected items on the inventory list with the physical inventory.
the auditor picks an item of inventory from the warehouse and determines whether it is included in the entity's list of inventories a. existence b. completeness c. accuracy d. rights
A D REQUIRED: IDENTIFY THE ASSERTION[S] RELATED TO EACH AUDIT PROCEDURE ASSERTION[S] E= existence C=Completeness A=Accuracy Cl=Classification Cu=Cutoff V=Valuation RO=Rights & Procedure Obligations A Compare sales invoices with customer purchase orders В Compare selected items on the inventory list with the physical inventory.
Which of the following statements is/ are not true? Financial accounting information can be used for internal reporting purposes. Routine information can be used to make decisions regarding both long term and the short term. Management accounting provides information relevant to decision making, planning, control and evaluation of performances. Cost accounting can only be used to provide inventory valuations for internal reporting.