INVENTORY Flashcards

1
Q

INVENTORY ON HAND NEVER EQUALS

A

INVENTORY CLIENT ACTUALLY OWNS

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2
Q

OBSOLETE OR DAMAGED GOODS

A

PHYSICAL COUNT AWARENESS

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3
Q

COMPLETENESS OF INV

A

CUTOFF PROCEDURES
1- states that inventory is on hand
2 - classified in the proper period

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4
Q

INVENTORY TRICK

SOMETIMES THEY INCLUDE

A

TRACE WHEN THE TRANSACTION DONE IS CLEARLY EXISTENCE

INTERNAL RECORD TO PHYSICAL COUNT

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5
Q

EASIEST WAY TO OBTAIN EVIDENCE

A

CONFIRMATION BEFORE OBSERVATION

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6
Q

review aged trial balance

A

for A/R evaluation

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7
Q

inventory turnover assertion

A

valuation NOT COMPLETENESS

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