Question: Analysis of errors. For a through e below, indicate effect of the described errors (if any) on the Audit Client's Inventory and Cost of Goods

Analysis of errors. For a through e below, indicate effect of

Analysis of errors. For a through e below, indicate effect of the described errors (if any) on the Audit Client's Inventory and Cost of Goods Sold. Assume a periodic inventory system. Use the following answers: Overstated Understated Correct Inventory Cost of Goods Sold a #1 #2 b b #3 #4 Situation Audit Client included goods in rented warehouse in inventory count. Goods in transit shipped ".0.b. destination" by supplier were included in ending inventory by Audit Client. Goods held on consignment by Audit Client were not included in inventory count. Goods in transit shipped "f.o.b. shipping point" by Audit Client were excluded in ending inventory. Goods in transit shipped "f.o.b. shipping point" by supplier were included in ending inventory by Audit Client. #5 #6 d #7 #8 e #9 #10

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