Multiple Choice
Which of the following is an accurate statement regarding perpetual inventory master files?
A) When perpetual inventory master files are accurate, auditors can test the physical inventory after the balance sheet date.
B) It is a difficult procedure for the auditor to test the accuracy of the perpetual inventory master files.
C) Auditors test the perpetual records for reductions in finished goods for sale as part of the sales and collection cycle.
D) All of the above are accurate statements.
Correct Answer:
Verified
Correct Answer:
Verified
Q50: The audit procedure "Foot the inventory listing
Q51: It is acceptable practice for CPA firms
Q52: Cost accounting controls are those related to
Q53: The design of tests of details of
Q54: A major source of cutoff information for
Q56: It is not allowed under accounting standards
Q57: The auditor is concerned with four aspects
Q58: Inventory is often a significant part of
Q59: One of the auditor's primary concerns in
Q60: The first step in verifying the valuation