Exam 9: Production Cycle

An auditor selected an inventory item on the warehouse floor,test counted it,and traced the count to the final inventory compilation.The auditor most likely was testing the PCAOB assertion of

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(Multiple Choice)

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Question 1

Correct Answer:

Verified

The audit procedures used in an observation of the client's physical inventory taking are designed primarily to

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Question 2

Correct Answer:

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

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(Essay)

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Question 3

Correct Answer:

Verified

Note that other answers are possible.
1.Obtain client's inventory counting instructions and review for completeness.
2.Tour facility before count looking for out-of-the-way items,obsolete items,and movement of inventory.
3.Observe client personnel counting inventory for compliance with instructions.
4.Test count a selection of items throughout the facility and record a sample of your test counts.Note description,stage of completion,counting unit,and condition.
5.Inspect tags used and unused and record tag numbers used.
6.Select a sample of used tags and trace each to the items on the floor.
7.Obtain the number of the last five receiving reports and last five shipping documents.Record numbers of the next unused items in sequence.
8.Tour facilities to ensure all items have been counted.

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

(Multiple Choice)

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Question 4

An auditor will usually trace the details of the test counts made during the observation of physical inventory counts to a final inventory compilation.This audit procedure is undertaken to provide evidence that items physically present and observed by the auditor at the time of the physical inventory count are

(Multiple Choice)

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Question 5

Selecting inventory from locations on the warehouse floor,obtaining a test count,and tracing the count to the final inventory compilation produces evidence for the _____________________________ ASB balance assertion. Question also found in study guide

(Short Answer)

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Question 6

Auditors __ the inventory taking and make ,but they seldom _ the entire inventory. Question also found in study guide

(Short Answer)

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Question 7

When auditing inventories,an auditor would least likely verify that

(Multiple Choice)

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Question 8

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 POCAOB assertion?

(Multiple Choice)

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Question 9

Counting inventory on the warehouse floor and tracing the count to the inventory compilation provides evidence to support which management (PCAOB)assertion?

(Multiple Choice)

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Question 10

Production planning interacts with the preparation of ____________________________________. Question also found in study guide

(Short Answer)

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Question 11

Which of the following procedures would best prevent or detect the theft of valuable items from an inventory that consists of hundreds of different items selling for $1 to $10 and a few items selling for hundreds of dollars?

(Multiple Choice)

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Question 12

If control risk is assessed high,cost accumulations will require additional substantive procedures to lower the risk of failing to detect material misstatements in inventory.

(True/False)

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Question 13

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?

(Multiple Choice)

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Question 14

Which of the following would be considered an analytical procedure?

(Multiple Choice)

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Question 15

The physical observation procedures for inventory are principally designed to audit for the balance assertions of ,,and . Question also found in study guide

(Short Answer)

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Question 16

Prepare an audit plan for inventory pricing and compilation.

(Essay)

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Question 17

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

(Multiple Choice)

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Question 18

To make a year-to-year comparison of inventory turnover most meaningful,the auditor will perform the analysis

(Multiple Choice)

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Question 19

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

(Multiple Choice)

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Question 20

Showing 1 - 20 of 98

An auditor selected an inventory item on the warehouse floor,test counted it,and traced the count to the final inventory compilation.The auditor most likely was testing the PCAOB assertion of

The audit procedures used in an observation of the client's physical inventory taking are designed primarily to

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

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

Selecting inventory from locations on the warehouse floor,obtaining a test count,and tracing the count to the final inventory compilation produces evidence for the _____________________________ ASB balance assertion. Question also found in study guide

Auditors __ the inventory taking and make ,but they seldom _ the entire inventory. Question also found in study guide

When auditing inventories,an auditor would least likely verify that

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 POCAOB assertion?

Counting inventory on the warehouse floor and tracing the count to the inventory compilation provides evidence to support which management (PCAOB)assertion?

Production planning interacts with the preparation of ____________________________________. Question also found in study guide

Which of the following procedures would best prevent or detect the theft of valuable items from an inventory that consists of hundreds of different items selling for $1 to $10 and a few items selling for hundreds of dollars?

If control risk is assessed high,cost accumulations will require additional substantive procedures to lower the risk of failing to detect material misstatements in inventory.

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?

Which of the following would be considered an analytical procedure?

The physical observation procedures for inventory are principally designed to audit for the balance assertions of ,,and . Question also found in study guide

Prepare an audit plan for inventory pricing and compilation.

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

To make a year-to-year comparison of inventory turnover most meaningful,the auditor will perform the analysis

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

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Audits governmental Audits and Fraud Examinations

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing and Information Technology

Filters

Exam 9: Production Cycle

An auditor selected an inventory item on the warehouse floor,test counted it,and traced the count to the final inventory compilation.The auditor most likely was testing the PCAOB assertion of

The audit procedures used in an observation of the client's physical inventory taking are designed primarily to

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

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

Selecting inventory from locations on the warehouse floor,obtaining a test count,and tracing the count to the final inventory compilation produces evidence for the _____________________________ ASB balance assertion. Question also found in study guide

Auditors ______________________________ the inventory taking and make ________________________________,but they seldom _____________________________ the entire inventory. Question also found in study guide

When auditing inventories,an auditor would least likely verify that

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 POCAOB assertion?

Counting inventory on the warehouse floor and tracing the count to the inventory compilation provides evidence to support which management (PCAOB)assertion?

Production planning interacts with the preparation of ____________________________________. Question also found in study guide

Which of the following procedures would best prevent or detect the theft of valuable items from an inventory that consists of hundreds of different items selling for $1 to $10 and a few items selling for hundreds of dollars?

If control risk is assessed high,cost accumulations will require additional substantive procedures to lower the risk of failing to detect material misstatements in inventory.

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?

Which of the following would be considered an analytical procedure?

The physical observation procedures for inventory are principally designed to audit for the balance assertions of ____________________________,____________________________,and ____________________________. Question also found in study guide

Prepare an audit plan for inventory pricing and compilation.

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

To make a year-to-year comparison of inventory turnover most meaningful,the auditor will perform the analysis

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

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Audits governmental Audits and Fraud Examinations

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing and Information Technology

Filters

Auditors __ the inventory taking and make ,but they seldom _ the entire inventory. Question also found in study guide

The physical observation procedures for inventory are principally designed to audit for the balance assertions of ,,and . Question also found in study guide