Describe management’s assertions for the inventory process. Which assertion is the most important for this process? Explain why this is so.
Answer to relevant QuestionsHow does the auditor assess control risk for the inventory process? Is the auditor likely to test internal controls for this process? Explain your answer.Describe how the accounts from the inventory process impact the financial statements. What are the presentation and disclosure issues associated with this process?Consider the audit procedure referred to as the “physical inventory count.”a. How does the client perform this procedure? What are the auditor’s responsibilities for it? b. When is it done? c. What is the purpose of ...Explain the accounting rules applicable to inventory accounts at year-end.How does statistical sampling differ from nonstatistical sampling? Explain how the auditor decides to use one method rather than the other.
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