Questions from Auditing and Assurance

Q: An auditor’s tests of controls over the issuance of raw materials to

An auditor’s tests of controls over the issuance of raw materials to production would most likely include a. Reconciliation of raw materials and work-in-process perpetual inventory records to general...

Q: Which of the following internal control activities is most likely to address

Which of the following internal control activities is most likely to address the completeness assertion for inventory? a. The work-in-process account is periodically reconciled with subsidiary records...

Q: An entity maintains perpetual inventory records in both quantities and dollars.

An entity maintains perpetual inventory records in both quantities and dollars. If the level of control risk were set at high, an auditor would probably a. Insist that the entity perform physical coun...

Q: The auditors for Weston University are conducting their audit for the fiscal

The auditors for Weston University are conducting their audit for the fiscal year ended December 31, 2018. Specifically, the audit firm is now focusing on the audit of revenue from this season’s home...

Q: After accounting for a sequence of inventory tags, an auditor traces

After accounting for a sequence of inventory tags, an auditor traces a sample of tags to the physical inventory listing to obtain evidence that all items a. Included in the listing have been counted....

Q: When auditing merchandise inventory at year-end, the auditor performs

When auditing merchandise inventory at year-end, the auditor performs a purchase cutoff test to obtain evidence that a. All goods purchased before year-end are received before the physical inventory c...

Q: Inquiries of warehouse personnel concerning possibly obsolete or slow-moving inventory

Inquiries of warehouse personnel concerning possibly obsolete or slow-moving inventory items provide assurance about management’s assertion of a. Completeness. b. Existence. c. Presentation. d. Valuat...

Q: Periodic or cycle counts of selected inventory items are made at various

Periodic or cycle counts of selected inventory items are made at various times during the year rather than via a single inventory count at year-end. Which of the following is necessary if the auditor...

Q: An auditor would probably be least interested in which of the following

An auditor would probably be least interested in which of the following fields in an electronic perpetual inventory file? a. Economic reorder quantity. b. Warehouse location. c. Date of last purchase....

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

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