A4 Flashcards
1
Q
What procedure would most likely provide assurance about a manufacturing entity’s inventory valuation?
A
Testing the entity’s computation of std overhead rates
2
Q
What are the two documents generated by the revenue cycle
A
Credit memos and sales invoices
3
Q
What is included during the count of negotiable securities?
A
Auditor records detail of the count an a security count WS AND includes acknowledgement by client rep that securities were returned intact
4
Q
Why do auditors analyze R&E accounts?
A
To ensure expenditures for PP&E have not been charged to expense
5
Q
What will cause a scope limitation to preclude the unmodified opinion due to mgmt?
A
If managemenr fuses to furnish a mgmt rep letter to the auditor
