If an auditor performs a stocktake of the inventory of Station Ltd and selects items from the factory floor to count and trace to the client’s stock sheets, the auditor will be obtaining evidence for which of the following assertions? Select one: a. Accuracy, valuation and allocation b. Completeness. c. Accuracy d. Existence

If an auditor performs a stocktake of the inventory of Station Ltd and selects items from the factory floor to count and trace to the client’s stock sheets, the auditor will be obtaining evidence for which of the following assertions? Select one: a. Accuracy, valuation and allocation b. Completeness. c. Accuracy d. Existence

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 32CYBK

See similar textbooks

Similar questions

An auditor selected items for test counts from the client’s warehouse during the physical inventory observation. The auditor then traced these test counts into the detailed inventory listing that agreed to the financial statements. This procedure most likely provided evidence concerning management’s assertion ofa. Rights and obligations.b. Completeness.c. Existence.d. Valuation.
when the auditor Watch employees count inventory to determine whether company procedures are being followed. What type of evidence he or she is obtaining : Select one: a. observation b. inspection c. confirmation d. assurance e. inquiry
An auditor selected items for test counts while observing a client’s physical inventory.The auditor traced the test counts to the client’s inventory listing. This procedurelikely obtained evidence about which balance-related audit objective for inventory?(1) Existence (3) Completeness(2) Rights and obligations (4) Realizable value
Which of the following management assertions is an auditor most likely testing if the audit objective states that all inventory on hand is reflected in the ending inventory balance?a. The entity has rights to the inventory.b. Inventory is properly valued.c. Inventory is properly presented in the financial statements.d. Inventory is complete
When verifying debits to the perpetual inventory records of a nonmanufacturing company, auditors would be most interested in examining a sample of purchasea. Approvals.b. Requisitions.c. Invoices.d. Orders.
When a company's financial statements are audited, the principal element an auditor reviews is the reliability of the financial statement assertions. Which of the following audit objectives relate primarily to the financial report assertion of accuracy, valuation and allocation? Select one:a. Inventory listings are accurately compiled and the totals are properly included in the inventory accounts.b. Inventory quantities include all products, materials and supplies owned by the company that are in transit.c. Inventories exclude items billed to customers or owned by others. d. None of the above
An audit trail enables a person to trace a source document to its ultimate effect on the financial statements or work back from amounts in the financial statements to source documents. Describe in detail the audit trail for the following: a. Purchases of inventoryb. Sales of inventoryc. Employee payroll
The auditor's assessment of the reliability and sufficiency of the information contained in the underlying accounting records is a part of ______________ a. Audit Test b. Comparison c. Evaluation d. Judgement
An auditor most likely would analyze inventory turnover rates to obtain evidence concerning management’s balance assertions abouta. Existence.b. Rights and obligations.c. Completeness.d. Valuation and allocation.
Which assertion is most likely being tested when an auditor vouches transactions from the sales Journal to the sales orders? a. cutoff b. rights c. completeness d. accuracy
Question: Assume that you are an auditor of a company. Explain any THREE categories of assertions that you will be testing when auditing the financial statements of the company. You are required to: (ii.) with proper justification and two sample transactions.
QUESTION 1 Observing the client's stocktake enables the auditor to establish that: O a. items belonging to the client are accurately counted and recorded. O D. count tags, sheets or cards are properly controlled. OC the client's personnel are complying with the instructions for stocktakes. O d. All of the above