Multiple Choice
If the perpetual inventory files are accurate,the auditor can
A) accept the client's inventory valuation as correct
B) assume that the stated quantities are present
C) test the physical inventory before the balance sheet date
D) test the physical inventory by reviewing receiving reports
Correct Answer:
Verified
Correct Answer:
Verified
Q5: According to FASB Concept Statement No.5,Recognition and
Q6: In the inventory process,the auditor typically uses
Q7: The accounts in the inventory process are<br>A)inventory<br>B)purchasing<br>C)allowance
Q8: When an understatement misstatement in inventory occurs<br>A)cost
Q9: Clients may understate inventory to reduce income
Q11: The auditor should plan the audit of
Q12: The cost accounting system determines<br>A)the cost of
Q13: As with all income statement accounts,the inventory
Q14: Automated inventory systems may be used to
Q15: When performing analytical procedures,what are "unexpected changes"