A rising inventory value and dropping inventory turnover ratio would indicate which of the following scenarios?

Question 19 options:

	Faster moving inventory
	New product inventory
	Immaterial inventory
	Slower moving inventory

Your client is a large producer of wheat. As a result, the client is exposed to large fluctuations in wheat prices. You realize that the client has fully hedged their exposure to wheat prices. Which of the following statements is true?

Question 18 options:

	The auditor should suggest that the client diversify their business to reduce dependence on just one product
	You will still consider fluctuating wheat prices as an inherent risk
	The auditor should consider wheat price fluctuation as an inherent risk, only if the audit firm has the expertise to assess hedging
	Since all the fluctuation in wheat prices is hedged, the auditor can omit wheat price fluctuation from the assessment of inherent risk

Risk of material misstatement is low for which of the following types of inventory?

Question 16 options:

	When the firm has changed from LIFO to FIFO without any good rationale
	When technological obsolescence is high
	When the inventory has low value
	When industry competition is high

Risk of material misstatement is low for which of the following types of inventory?

Question 16 options:

	When the firm has changed from LIFO to FIFO without any good rationale
	When technological obsolescence is high
	When the inventory has low value
	When industry competition is high

vcWhich of the following information should an auditor collect during the audit planning phase?

1. About the company

2. About the management

3. About the industry

4. About the regulatory environment

Question 15 options:

	Information from items 1, 2 and 3
	Information from items 1, 2, 3 and 4
	Information from items 1 and 2
	Information from items 1, 2 and 4