A client company wishes to conduct its physical inventory on a sampling basis. Many items will not be counted. Under what general conditions will this method of taking inventory be acceptable to the auditors?
Answer to relevant QuestionsHana Ranch Company, which has never been audited, is asked on October 1 by its bank to arrange for a year-end audit. The company retains you to make this audit and asks what measures, if any, it should take to ensure a ...Multiple Choice Questionsa. An auditor most likely would make inquiries of production and sales personnel concerning possible obsolete inventory to address:(1) Valuation.(2) Rights.(3) Existence.(4) Presentation.b. An ...Hamlin Metals Company has sales representatives covering several states and provides auto-mobiles for them and for its executives. Describe any substantive procedures you would consider appropriate for the company’s fleet ...Allen Fraser was president of three corporations: Missouri Metals Corporation, Kansas Metals Corporation, and Iowa Metals Corporation. Each of the three corporations owned land and buildings acquired for approximately ...The following are typical questions that might appear on an internal control questionnaire relating to plant and equipment:1. Has a dollar minimum been established for expenditures to be capitalized?2. Are subsidiary ledgers ...
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