Question: In the audit of inventory what is the purpose of
In the audit of inventory, what is the purpose of the analytical procedure that compares gross profit margin by month for the last two fiscal periods?
Answer to relevant QuestionsWhat substantive tests of details of transactions and balances are used to verify the pricing of manufactured inventory items? Which assertion do these procedures mainly address?Which government tax returns can be reconciled in total with employees’ year-to-date earnings records? Reconciled in total but not in detail? How can an auditor find out whether payroll control procedures were followed by company personnel?How can an auditor determine whether the amount of labour cost charged to production was actually paid to employees? Listed below is a selection of items from the payroll processing internal control questionnaire in Exhibit 13A–2.1. Are names of terminated employees reported in writing to the payroll department?2. Are authorizations for ...
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