Invetory Cycle

Question 1

To obtain assurance slow moving and obsolete items in the inventory properly identified Auditor

Answer 1

Examine Inventory Turn Over

Question 2

Inquiries of slow moving& obsolete inventory prove what assertion

Answer 2

Valuation(balances recorded at proper valuation

Question 3

Observation of inventory count traced to inventory listing test what assertion

Answer 3

Completeness

Question 4

Auditor expect loan agreements of pledged inventory to support

Answer 4

Presentation and disclosure

Question 5

Audit procedure elated to understandability and classification

Answer 5

Confirming inventory pleaged under loan agreements

Question 6

Inventory listing are valid. Auditor trace:

Answer 6

Tracing items from inventory list to inv tags and count sheets

Question 7

Actual inventory is higher than perpetual records

Answer 7

Failure to record sales returns

Question 8

Which procedure provides assurance about inventory valuation

Answer 8

Testing entities computation of standard overhead rate

Question 9

Which internal control would be used to maintain accurate inventory records?

Answer 9

Periodic inv count to adj perpetual inv records

Question 10

Insignificant inv in public warehouse. Auditor needs

Answer 10

Confirmation

Question 11

Tracing a sample inventory tag to computerezed listing determine

Answer 11

Items with tags included to listing

Question 12

Procedure most appropriate for testing completness assertion

Answer 12

Cut off for shipping and receiving

Question 13

FOB destination

Answer 13

Title transferred to customer when he receives the goods