What characteristics do auditors consider in reviewing a client’s inventory- taking instructions?
Answer to relevant QuestionsExplain dual- direction sampling in the context of inventory test counts.To determine the client’s planned amount and timing of production of a product, the auditor reviews the a. Sales forecast. b. Inventory reports. c. Production plan. d. Purchases journal.From the auditors’ point of view, inventory counts are more acceptable prior to the year- end when a. Internal control is weak. b. Accurate perpetual inventory records are maintained. c. Inventory is slow moving. d. ...When evaluating inventory controls, an auditor would be least likely to a. Inspect documents. b. Make inquiries. c. Observe procedures. d. Consider policy and procedure manuals.Tests of Controls Related to Controls and Assertions. Each of the following tests of controls could be performed during the audit of the controls in the production cycle. Required: For each procedure, identify (a) The ...
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