Questions from Auditing and Assurance

Q: The purpose of tracing a sample of inventory tags to a client’s

The purpose of tracing a sample of inventory tags to a client’s computerized listing of inventory items is to determine whether the inventory items a. Represented by tags were included on the listing....

Q: To determine the client’s planned amount and timing of production of a

To determine the client’s planned amount and timing of production of a product, the auditor reviews the a. Sales forecast. b. Inventory reports. c. Production plan. d. Purchases journal.

Q: Why should receiving reports be prenumbered? What assertion would an auditor

Why should receiving reports be prenumbered? What assertion would an auditor test using the receiving reports, and how would the auditor do this?

Q: ABC Company has 100 shares of IBM stock that it holds as

ABC Company has 100 shares of IBM stock that it holds as an investment. The stock was purchased three years ago and has been in the client’s safe deposit box along with other investment securities. Du...

Q: What characteristics should be considered in reviewing a client’s inventory-taking

What characteristics should be considered in reviewing a client’s inventory-taking instructions?

Q: Explain dual-direction sampling in the context of inventory test counts

Explain dual-direction sampling in the context of inventory test counts.

Q: Which of the following auditing procedures probably would provide the most reliable

Which of the following auditing procedures probably would provide the most reliable evidence concerning the entity’s assertion of rights and obligations related to inventories? a. Trace test counts no...

Q: An auditor most likely would analyze inventory turnover rates to obtain evidence

An auditor most likely would analyze inventory turnover rates to obtain evidence concerning management’s balance assertions about a. Existence. b. Rights and obligations. c. Completeness. d. Valuation...

Q: An auditor would vouch inventory on the inventory status report to the

An auditor would vouch inventory on the inventory status report to the vendor’s invoice to obtain evidence concerning management’s balance assertions about a. Existence. b. Rights and obligations. c....

Q: When evaluating inventory controls, an auditor would be least likely to

When evaluating inventory controls, an auditor would be least likely to a. Inspect documents. b. Make inquiries. c. Observe procedures. d. Consider policy and procedure manuals.