Exam 20: Audit of the Inventory and Warehousing Cycle

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The extent and timing of an auditor's physical examination of inventory is significantly influenced by the adequacy of the client's perpetual inventory records.

(True/False)

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Question 101

To best ascertain that a company has properly included merchandise that it owns in its ending inventory,the auditor should review and test the:

(Multiple Choice)

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Question 102

Which one of the following analytical procedures would be most useful in alerting the auditor to the possibility of obsolete inventory?

(Multiple Choice)

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Question 103

Which of the following is not a function within the inventory and warehousing cycle?

(Multiple Choice)

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Question 104

In pricing raw materials in manufactured products,auditors must consider both the unit cost of the raw materials and the number of units required to manufacture a unit of output.

(True/False)

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Question 105

The audit procedure "Perform tests of lower-of-cost-or-market,selling price,and obsolescence" provides assurance mainly for the realizable value objective for inventory pricing and compilation.

(True/False)

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Question 106

Which of the following statements is correct regarding the audit of inventory cost accounting?

(Multiple Choice)

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Question 107

An approved purchase requisition form authorizes shipment of goods to customers.

(True/False)

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Question 108

In valuing inventory,the auditor must consider all but which of the following factors?

(Multiple Choice)

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Question 109

Which of the following statements is correct regarding the auditor's responsibility with respect to the year-end inventory procedures of an audit client?

(Multiple Choice)

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Question 110

Cost accounting controls are those related to the physical inventory and the consequent costs from the point at which:

(Multiple Choice)

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Question 111

Which of the following is a significant audit concern related to the transfer of inventory from one location to another?

(Multiple Choice)

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Question 112

The audit of the inventory and warehousing cycle consists of five parts.State the five parts and,for each part,identify the cycle in which that part is tested by the auditor.

(Essay)

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Question 113

An auditor selects a random sampling of tag numbers and identifies the tag with that number attached to the actual inventory.The purpose of the procedure is to:

(Multiple Choice)

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Question 114

Which one of the following procedures would not be appropriate for an auditor in discharging his responsibilities concerning the client's physical inventories?

(Multiple Choice)

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Question 115

________ is normally characterized as a difficult and complex account to audit.

(Multiple Choice)

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Question 116

Showing 101 - 116 of 116

Exam 20: Audit of the Inventory and Warehousing Cycle

The extent and timing of an auditor's physical examination of inventory is significantly influenced by the adequacy of the client's perpetual inventory records.

To best ascertain that a company has properly included merchandise that it owns in its ending inventory,the auditor should review and test the:

Which one of the following analytical procedures would be most useful in alerting the auditor to the possibility of obsolete inventory?

Which of the following is not a function within the inventory and warehousing cycle?

In pricing raw materials in manufactured products,auditors must consider both the unit cost of the raw materials and the number of units required to manufacture a unit of output.

The audit procedure "Perform tests of lower-of-cost-or-market,selling price,and obsolescence" provides assurance mainly for the realizable value objective for inventory pricing and compilation.

Which of the following statements is correct regarding the audit of inventory cost accounting?

An approved purchase requisition form authorizes shipment of goods to customers.

In valuing inventory,the auditor must consider all but which of the following factors?

Which of the following statements is correct regarding the auditor's responsibility with respect to the year-end inventory procedures of an audit client?

Cost accounting controls are those related to the physical inventory and the consequent costs from the point at which:

Which of the following is a significant audit concern related to the transfer of inventory from one location to another?

The audit of the inventory and warehousing cycle consists of five parts.State the five parts and,for each part,identify the cycle in which that part is tested by the auditor.

An auditor selects a random sampling of tag numbers and identifies the tag with that number attached to the actual inventory.The purpose of the procedure is to:

Which one of the following procedures would not be appropriate for an auditor in discharging his responsibilities concerning the client's physical inventories?

________ is normally characterized as a difficult and complex account to audit.

The Assurance Services Market

The Audit Standards Setting Process

Audit Reports

Legal Liability Considerations for Auditors

Ethics and the Audit Profession

Audit Responsibilities and Objectives

Nature and Type of Audit Evidence

Audit Planning

Considering Materiality and Audit Risk

Considering Internal Control

Considering the Risk of Fraud

Implications of Information Technology for the Audit Process

Developing the Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Audit Completion

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

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