Exam 21: Assurance,Attestation,and Internal Auditing Services

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We know from cost accounting that there are three components that make up the standard costs for inventory.Explain how an auditor could test each of these components for a company that manufactures pillows.

(Essay)

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Question 61

Below is information relating to the inventory management of your audit client,Quick Sell.Using analytical procedures,identify any concerns you have about misstatements in the financial statements. 2008 2009 Industry Average Inventory \ 16,500 \ 26,250 \2 5,000 Inventory Turnover 12 9 18

(Essay)

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Question 62

Which assertion for ending inventory is most likely violated if the gross profit percentage is much greater than last year?

(Multiple Choice)

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Question 63

An auditor concluded that no excessive costs for idle plant were charged to inventory.This conclusion most likely related to the auditor's objective to obtain evidence about the financial statement assertions regarding inventory,including presentation and disclosure and

(Multiple Choice)

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Question 64

In an audit of inventories,an auditor would least likely verify that

(Multiple Choice)

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Question 65

The audit of year-end physical inventories should include steps to verify that the client's purchases and sales cutoffs were adequate.The audit steps should be designed to detect whether merchandise included in the physical count at year-end was not recorded as a

(Multiple Choice)

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Question 66

List five things an auditor should do during the observation of the physical count of inventory.

(Essay)

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Question 67

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

(True/False)

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Question 68

To gain assurance that all inventory items in a client's inventory listing schedule are valid,an auditor most likely would trace

(Multiple Choice)

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Question 69

A high inventory turnover ratio normally indicates inefficient inventory policies.

(True/False)

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Question 70

A client's physical count of inventories was higher than the inventory quantities per the perpetual records.This situation could be the result of the failure to record

(Multiple Choice)

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Question 71

An auditor has accounted for a sequence of inventory tags and is now going to trace information on a representative number of tags to the physical inventory sheets.The purpose of this procedure is to obtain assurance that

(Multiple Choice)

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Question 72

Which of the following is not a misstatement related to the occurrence assertion for inventory?

(Multiple Choice)

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Question 73

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 provided evidence concerning management's assertion of

(Multiple Choice)

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Question 74

Showing 61 - 74 of 74

We know from cost accounting that there are three components that make up the standard costs for inventory.Explain how an auditor could test each of these components for a company that manufactures pillows.

Below is information relating to the inventory management of your audit client,Quick Sell.Using analytical procedures,identify any concerns you have about misstatements in the financial statements. 2008 2009 Industry Average Inventory \ 16,500 \ 26,250 \2 5,000 Inventory Turnover 12 9 18

Which assertion for ending inventory is most likely violated if the gross profit percentage is much greater than last year?

An auditor concluded that no excessive costs for idle plant were charged to inventory.This conclusion most likely related to the auditor's objective to obtain evidence about the financial statement assertions regarding inventory,including presentation and disclosure and

In an audit of inventories,an auditor would least likely verify that

The audit of year-end physical inventories should include steps to verify that the client's purchases and sales cutoffs were adequate.The audit steps should be designed to detect whether merchandise included in the physical count at year-end was not recorded as a

List five things an auditor should do during the observation of the physical count of inventory.

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

To gain assurance that all inventory items in a client's inventory listing schedule are valid,an auditor most likely would trace

A high inventory turnover ratio normally indicates inefficient inventory policies.

A client's physical count of inventories was higher than the inventory quantities per the perpetual records.This situation could be the result of the failure to record

An auditor has accounted for a sequence of inventory tags and is now going to trace information on a representative number of tags to the physical inventory sheets.The purpose of this procedure is to obtain assurance that

Which of the following is not a misstatement related to the occurrence assertion for inventory?

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 provided evidence concerning management's assertion of

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning,Types of Audit Tests,and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct,Independence,and Quality Control

Legal Liability

Assurance,Attestation,and Internal Auditing Services

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