The auditors strategy in performing test counts during the observation of the inventory count is to: (a)

Question:

The auditor’s strategy in performing test counts during the observation of the inventory count is to:

(a) test all large-dollar items.

(b) randomly select all test items.

(c) concentrate tests on high-dollar items with random selection of other items.

(d) concentrate tests in areas where employees seem to be disregarding the inventory instructions.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing A Practical Approach

ISBN: 9781118878415

1st Extended Canadian Edition

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren

See More Books

Question Posted: Feb 16, 2024 03:00 PM

See More Questions

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
1. How strong are the competitive forces confronting J. Crew in the market for specialty retail? Do a [Michael Porter] five-forces analysis to support your answer. (see chapter 3 in the textfor...
QUIZ... Let D be a poset and let f : D D be a monotone function. (i) Give the definition of the least pre-fixed point, fix (f), of f. Show that fix (f) is a fixed point of f. [5 marks] (ii) Show that...
How can we use these theories to analyze factors which influence the longevity and adaptability of these organizations in changing landscapes?
With China and India having combined populations of over 2 billion people, low wage rates, and high economic growth rates, what types of U.S. industries do you believe will move part or all of their...
Drew Rosen Automation Company estimates the data entry and verifying times for four jobs as follows: In what order should the jobs be done if the company has one operator for each job? Illustrate the...
A pilot survey was conducted with thirty respondents to examine Internet usage for personal (nonprofessional) reasons. The following table contains the resulting data giving each respondent's sex...
A graphical approach was used to solve the following LP model in Problem 2-15: Maximize profit = $4X + $3T Subject to the constraints 3XY 27 X, Y >0
X. Consider the graph of the function f(x) = 5x - 8x. Find the slope of the secant that joins the points on the graph given by x=-2 and x = 3. Determine the average rate of change as x changes from...
The auditor identifies the specific audit objective: determine that property, plant, and equipment assets are in productive use at the end of the reporting period. This objective is derived from: (a)...
During the observation of the inventory count, the auditor has no responsibility to: (a) observe the count by client personnel. (b) make some test counts of inventory quantities. (c) supervise the...
No flying reindeer are animals who get lost in the fog. Therefore, it is false that all flying reindeer are animals who get lost in the fog. Use the traditional square of opposition to determine...
Michael earns $110,000, and his tax liability for the current year is $8,000, double what it was the previous year.To avoid penalties, how much do his combined payments (withholding and credits) have...
Assume a stock with a volatility of 0.5 sells at $50. The risk-free rate is 6% per annum and volatility is 0.2. What is the price of a European call with a $50 strike and time to expiration 3 months?
What are the costs of implementing an accounting change? What are some other possible costs of changing accounting methods? Can you think of examples other than the ones provided in your reading this...
GAF was approached by the AAA Airline to see if it would be interested in auditing AAA. GAF was open to the notion, but disclosed to AAA that it had long audited several other airline companies....
A number of states have legalized marijuana possession and use up to certain levels designated in their laws. Several other states have legalized marijuana possession and use for medicinal purposes,...
The following are excerpts from a conversation between two mangers about their companies activity-based systems. Identify the manger who works for a company that emphasizes ABM and the one who work...
Revol Industries manufactures plastic bottles for the food industry. On average, Revol pays $76 per ton for its plastics. Revol's waste-disposal company has increased its waste-disposal charge to $57...
Professional competence and due care means that members of the professional body must: (a) Maintain their knowledge and skill at the required level. (b) Keep up to date with changes in regulations...
Professional competence and due care means that members of the professional body must: (a) Maintain their knowledge and skill at the required level. (b) Keep up to date with changes in regulations...
Professional competence and due care means that members of the professional body must: (a) Maintain their knowledge and skill at the required level. (b) Keep up to date with changes in regulations...
Ursula believes that many individuals in her organization are storing sensitive information on their laptops in a manner that is unsafe and potentially violates the organization's security policy....
5) ABC receives a $9,000, 8%, 2-month note. The maturity value is: 6) Tarheel Services is holding a note receivable from one of its customers, and wishes to collect the cash earlier than the maturity...
Analyze why a cost-increasing innovation would continue to be use as a technology-based innovations.

The auditors strategy in performing test counts during the observation of the inventory count is to: (a)

Question:

Step by Step Answer:

c concentrate t...View the full answer

Auditing A Practical Approach

Students also viewed these Business questions