A client has physical controls over inventories, including a locked warehouse with access restricted to authorised personnel.
Question:
A client has physical controls over inventories, including a locked warehouse with access restricted to authorised personnel. Testing of these physical controls over inventories shows that they are very effective. Can the auditor conclude that there are likely to be no errors in the valuation of inventories? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (2 reviews)
While effective physical controls over inventories such as a locked warehouse with restricted access are important and can significantly reduce the ri...View the full answer
Answered By
Hemstone Ouma
"Hi there! My name is Hemstone Ouma and I am a computer scientist with a strong background in hands-on experience skills such as programming, sofware development and testing to name just a few. I have a degree in computer science from Dedan Kimathi University of Technology and a Masters degree from the University of Nairobi in Business Education. I have spent the past 6 years working in the field, gaining a wide range of skills and knowledge. In my current role as a programmer, I have had the opportunity to work on a variety of projects and have developed a strong understanding of several programming languages such as python, java, C++, C# and Javascript.
In addition to my professional experience, I also have a passion for teaching and helping others to learn. I have experience as a tutor, both in a formal setting and on a one-on-one basis, and have a proven track record of helping students to succeed. I believe that with the right guidance and support, anyone can learn and excel in computer science.
I am excited to bring my skills and experience to a new opportunity and am always looking for ways to make an impact and grow as a professional. I am confident that my hands-on experience as a computer scientist and tutor make me a strong candidate for any role and I am excited to see where my career will take me next.
5.00+
8+ Reviews
22+ Question Solved
Related Book For
Auditing A Practical Approach
ISBN: 9780730364573
3rd Edition
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton
Question Posted:
Students also viewed these Business questions
-
A client has physical controls over inventory, including a locked warehouse with access restricted to authorized personnel. Testing of these physical controls over inventory shows that they are very...
-
Sharon Gallagher (audit manager), Josh Thomas (audit senior), Ian Harper, and Suzie Pickering (both audit staff) are meeting to discuss their internal control assessment for Cloud 9. Sharon asks,...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
The Louisiana Grill The Louisiana Grill (TLG) is a restaurant in Toronto. TLG is a regional restaurant created and operated by Alex Ven- tresca, a former football player from New Orleans. The company...
-
Analysis of flexible budgets and standard costs emphasizes the importance of a similar unit of measure for meaningful comparisons and evaluations. When Best Buy compiles its financial reports in...
-
What is the practical distinction between discrete and continuous variables?
-
Data relevant to the audit of accounts receivable in two companies are tabulated below: The auditor decides to consider alpha risk only. Required: a. Compute the required sample size for each company...
-
Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $325,000. The system can be sold today for $200,000. It is being depreciated...
-
Ted and his family - Ted (38), Liz (38), Ted Jr. (11), and Miriam (8) - are covered under the UniCare State Indemnity Plan (Basic with CIC). In 2022, Ted and his family had the following events: 1....
-
On July 1, 2019, North Inc., based in Alberta, ordered merchandise from an American supplier for US$600,000. Delivery was scheduled for the month of October, with payment to be made in full on...
-
Consider the following statement: If inherent and control risk are high, the auditor will set detection risk as low to maintain a low audit risk. Explain what it means to set detection risk as low....
-
What is audit risk? What are the components of audit risk?
-
Mindy is a candidate for a bachelors degree at a local state university. She received a grant that covered the following expenses: Mindys tuition this year was $8,000. She spent the entire $7,000...
-
A stream of nitrogen is initially at 20 bar and 400 K, and at a velocity 10 m/s. Determine the final velocity and temperature of the stream if its pressure is reduced to 5 bar by passing through: a)...
-
Earnhardt Driving School's 2018 balance sheet showed net fixed assets of $5.4 million, and the 2019 balance sheet showed net fixed assets of $6 million. The company's 2019 income statement showed a...
-
A big tank initially contains 1000 L of a salt-water solution, which has a concentration of 0.02 kg of salt per liter. Brine (a solution of salt in water) containing 0.03 kg of salt per liter of...
-
David is purchasing a home for $127,600. He has 10% to put down on the home and wishes to pay one discount point. What is the amount of his principle that he will finance?
-
3 4 You have forecasted Lunar Motivation Corporation (LMC) free cash flow in 2022 to be -$246.34 million, $300 million in 2023, 350 million in 2024, and 400 million in 2025. After 2025, free cash...
-
Match each of the following control activities to the type of control activity. a. Segregation of duties b. Reconcile assets to accounts c. Physical controls ___ 1. Take a physical inventory count...
-
Problem 2. (0.6 points, 0.2 points for each question) (a) A company turns its inventory 2 times a month. Its months-of-supply = Its days-of-supply = Please show your analysis below: _months. days. (1...
-
The primary objective of a CPAs observation of a clients physical inventory count is to: a. Discover whether a client has counted a particular inventory item or group of items. b. Obtain direct...
-
Explain the difference between year-end counting of inventory and cycle counts. What conditions should exist at a client that conducts cycle counts and uses the perpetual inventory to value inventory...
-
In the audit of inventory, selecting inventory items from a perpetual master file, going to the locations, and obtaining test counts is intended to produce evidence for which audit assertion? a....
-
On December 31, 2024, Windsor Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Windsor to make annual payments of $9,353 at the beginning of each...
-
Honduran citizen Vicente Adolfo Solano, 53, living in Miami, is facing charges for allegedy planning to detonate a weapon of mass destruction in a Miami shopping mall. The announcement was made by...
-
Amazing Dreams just paid $3 dividend per share. It is expected that the payment is going to increase by 5% each year. If the current stock price is $50, what should be the expected stock price for...
Study smarter with the SolutionInn App