What analytical procedures might reveal obsolete or slow- moving inventory?
Answer to relevant QuestionsWhich of the following methods for determining inventory cost is not allowed by GAAP? a. Average cost. b. FIFO. c. LIFO. d. Standard costTo make a year- to- year comparison of inventory turnover most meaningful, the auditor per-forms the analysis a. For the company as a whole. b. By division. c. By product. d. All of the above.A client maintains perpetual inventory records in quantities and in dollars. If the assessed control risk is high, an auditor would probably a. Apply gross profit tests to ascertain the reasonableness of the physical ...Your client counts inventory three months before the end of the fiscal year because controls over inventory are excellent. Which procedure is not necessary for the roll- forward? a. Check that shipping documents for the last ...Your client took a complete physical inventory count under your observation as of December 15 and adjusted the inventory control account (perpetual inventory method) to agree with the physical inventory count. After ...
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