Exam 15: Final Work: Specific Problems Relating to Inventories, Construction Contracts, Trade Payables and Financial Liabilities

When considering recorded trade payables why is segregation of duties particularly important?

Using the terms below, complete the following extract from paragraph A17 of ISA500 referring to observations of inventory counts: 1. analytical data 2. audit evidence 3. audit staff 4. others 5. point in time at 6. year in -Observation consists of looking at a process or procedure being performed by ________________ …. Observation provides ________________ about the performance of a process or procedure, but is limited to the ________________which the observation takes place.

What is the definition of Net Realizable Value (NRV)?

Using analytical procedures based on inventory purchases, trade payables were 10 per cent higher than expected. Which of the following explanations from management would help explain this difference from expectations?

Which of the following is NOT a reason inventory is generally considered to have a high inherent risk?

On what basis must overheads be allocated to inventory?

If accounts payable are denominated in foreign currency at balance date, they should be: