Questions from Auditing and Assurance

Q: Explain why most auditors consider the receipt of goods and services the

Explain why most auditors consider the receipt of goods and services the most important point in the acquisition and payment cycle.

Q: Before the physical examination, the auditor obtains a copy of the

Before the physical examination, the auditor obtains a copy of the client's inventory instructions and reviews them with the controller. In obtaining an understanding of inventory procedures for a sma...

Q: At the completion of an inventory observation, the controller requested the

At the completion of an inventory observation, the controller requested the auditor to give him a copy of all recorded test counts to facilitate the correction of all discrepancies between the client'...

Q: What major audit procedures are involved in testing for the ownership of

What major audit procedures are involved in testing for the ownership of inventory during the observation of the physical counts and as a part of subsequent valuation tests?

Q: In the verification of the amount of the inventory, one of

In the verification of the amount of the inventory, one of the auditor's concerns is that slow-moving and obsolete items be identified. List the auditing procedures that can be used to determine whet...

Q: During the taking of physical inventory, the controller intention ally withheld

During the taking of physical inventory, the controller intention ally withheld several inventory tags from the employees responsible for the physical count. After the auditor left the client's premis...

Q: Explain why a proper cutoff of purchases and sales is heavily dependent

Explain why a proper cutoff of purchases and sales is heavily dependent on the physical inventory observation. What information should be obtained during the physical count to make sure that cutoff is...

Q: Define what is meant by compilation tests. List several examples of

Define what is meant by compilation tests. List several examples of audit procedures to verify compilation.

Q: Which internal controls should the auditor be most concerned about in the

Which internal controls should the auditor be most concerned about in the audit of notes payable? Explain the importance of each.

Q: List the major analytical procedures for testing the overall reasonableness of inventory

List the major analytical procedures for testing the overall reasonableness of inventory. For each test, explain the type of misstatement that could be identified.