Exam 9: Production Cycle 394

An auditor's tests of controls over the issuance of raw materials to production would most likely include

When auditing inventories, an auditor would least likely verify that

Which of the following internal control activities most likely addresses the completeness assertion for inventory?

With a sample of open and closed production cost reports, vouching labor cost to ________ is a test for ________ .

While observing a client's annual physical inventory, an auditor recorded test counts for several items and noticed that certain test counts were higher than the recorded quantities in the client's perpetual records. This situation could be the result of the client's failure to record

An inventory trial balance can be used to scan for _______ and as a population for sample selection for the _______ .

Prepare an audit plan for the observation of an inventory count.

An auditor selected items for test counts while observing a client's physical inventory. The auditor then traced the test counts to the client's inventory listing. This procedure most likely obtained evidence concerning management's balance assertion of

An auditor selected an invoice for a large inventory purchase and vouched the invoice to the receiving report. Which ASB transaction assertion is the auditor most likely testing?

At the beginning of the observation of the inventory count, the auditor records the last bill of lading used by the company to

The production planner determines what inventory is need for future production using

An auditor selected a product maintained in the finished goods warehouse. The auditor counted the product and compared this amount with the amount in the finished goods perpetual inventory subsidiary account. Which ASB balance assertion is the auditor most likely testing?

Which of the following is an internal control weakness for a company whose inventory of supplies consists of a large number of individual items?

Which of the following procedures would be most appropriate for testing the completeness assertion as it applies to inventory?

Maple Company has an increase in purchases from specific vendors and an increase in raw materials inventory for the items purchased from these vendors. Sales for the company have not increased and are not forecast to increase. From this information an auditor might suspect

L. Martinez, CPA, was auditing a client, Marvelous Retail Company and selected a sample of inventory items from the perpetual records and vouched additions to receiving reports. This procedure was intended to satisfy which PCAOB assertion?

Vouching a sample of items from the perpetual inventory records to the receiving reports achieves the specific ASB balance assertion of

A retailer's physical count of inventory was higher than that shown by the perpetual records. Which of the following could explain the difference?

An auditor most likely would analyze inventory turnover rates to obtain evidence concerning management's balance assertions about

The overall production starts with production planning, which usually is based on a _______.