Question 1

When costing manufactured inventory all of the following procedures are necessary except:

Accepted Answer

A)  determining the cost of materials entered into raw materials. 
B)  determining the cost of raw materials transferred to work in process. 
C)  recording costs of direct labour applied to work in process. 
D)  determine the cost of purchases. 
A)  determining the cost of materials entered into raw materials. 
B)  determining the cost of raw materials transferred to work in process. 
C)  recording costs of direct labour applied to work in process. 
D)  determine the cost of purchases.

Question 2

The auditor is least likely to discover unrecorded retirements of property, plant and equipment assets by:

Accepted Answer

A)  analysing the miscellaneous revenue account. 
B)  investigating the disposition of facilities associated with discontinued product lines. 
C)  selecting retirement work orders from the accounting records and verifying their accuracy. 
D)  reviewing insurance policies for termination or reductions of coverage. 
A)  analysing the miscellaneous revenue account. 
B)  investigating the disposition of facilities associated with discontinued product lines. 
C)  selecting retirement work orders from the accounting records and verifying their accuracy. 
D)  reviewing insurance policies for termination or reductions of coverage.

Question 3

An important procedure for the conduct of a physical inventory count is to maintain control over the count systems. Which of the following is not a common count system?

Accepted Answer

A)  use of pre-printed inventory count sheets. 
B)  use of blank inventory tags. 
C)  use of blank, pre-numbered inventory count sheets. 
D)  use of pre-numbered three-part inventory tags. 
A)  use of pre-printed inventory count sheets. 
B)  use of blank inventory tags. 
C)  use of blank, pre-numbered inventory count sheets. 
D)  use of pre-numbered three-part inventory tags.

Question 4

Which of these factors contributes least to the risk of misstatement of inventories?

Accepted Answer

A)  the volume of transactions. 
B)  location at a large single site. 
C)  vulnerability to spoilage or damage. 
D)  all of the factors listed contribute equally to the risk of misstatement of inventories 
A)  the volume of transactions. 
B)  location at a large single site. 
C)  vulnerability to spoilage or damage. 
D)  all of the factors listed contribute equally to the risk of misstatement of inventories

When costing manufactured inventory all of the following procedures are necessary except:

The auditor is least likely to discover unrecorded retirements of property, plant and equipment assets by:

An important procedure for the conduct of a physical inventory count is to maintain control over the count systems. Which of the following is not a common count system?

Which of these factors contributes least to the risk of misstatement of inventories?

An Overview of Auditing

Governance and the Auditor

Professional Ethics, Independence and Audit Quality

Other Assurance Engagements and Quality Standards

The Auditors Legal Liability

Overview of the Audit Financial Statements

The Auditors Report

Client Evaluation and Planning the Audit

Audit Risk Assessment

Materiality and Audit Evidence

Tests of Controls

Designing Substantive Procedures

Audit Sampling

Auditing Sales and Receivables

Auditing Purchases, Payables and Payroll

Auditing Cash and Investments

Completing the Audit

Filters

Exam 16: Auditing Inventories and Property, Plant and Equipment

When costing manufactured inventory all of the following procedures are necessary except:

The auditor is least likely to discover unrecorded retirements of property, plant and equipment assets by:

An important procedure for the conduct of a physical inventory count is to maintain control over the count systems. Which of the following is not a common count system?

Which of these factors contributes least to the risk of misstatement of inventories?

An Overview of Auditing

Governance and the Auditor

Professional Ethics, Independence and Audit Quality

Other Assurance Engagements and Quality Standards

The Auditors Legal Liability

Overview of the Audit Financial Statements

The Auditors Report

Client Evaluation and Planning the Audit

Audit Risk Assessment

Materiality and Audit Evidence

Tests of Controls

Designing Substantive Procedures

Audit Sampling

Auditing Sales and Receivables

Auditing Purchases, Payables and Payroll

Auditing Cash and Investments

Completing the Audit

Filters