Multiple Choice
The auditor should plan the audit of the inventory business process with the following presumption:
A) there is a risk of material misstatement due to fraud relating to inventory transactions.
B) professional skepticism is necessary to find misstatements.
C) planning the audit requires a questioning mind.
D) the general environment or tone in the company may allow management to rationalize committing fraud.
Correct Answer:
Verified
Correct Answer:
Verified
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
Q10: If the perpetual inventory files are accurate,the
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"
Q16: The applicable financial reporting framework allows the