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Distinguish between regular audit documentation review and independent review and state the purpose of each.
How does an auditor evaluate the unadjusted misstatement schedule at the end of the audit engagement to assess whether the financial statements.
Distinguish between contingent liabilities and commitments and explain why both are important in an audit.
Describe the audit procedures you would use to learn about each of the situations listed.
Evaluate Little's approach to sending the attorney letters and her follow-up on the responses.
Over what time period is the auditor required to consider the client's ability to continue as a going concern?
What are the purposes of additional information accompanying basic financial statements?
Give the reasons why inventory is often the most difficult and time consuming part of many audits.
Explain the relationship between the acquisition and payment cycle and the inventory and warehousing cycle in the audit of a manufacturing company.
What are the most important tests of the perpetual records that the auditor must make before reducing assessed control risk?
Evaluate the importance of each of these deficiencies and state its effect on the auditor's observation of inventory.
At the completion of an inventory observation, the controller requested the auditor to give him a copy of all recorded test counts to facilitate.
Define what is meant by compilation tests. List several examples of audit procedures to verify compilation.
List the auditing procedures that can be used to determine whether slow-moving or obsolete items have been included in inventory.
How could the auditor have uncovered the misstatement, assuming that there are no perpetual records?
Assuming that the auditor properly documents receiving report numbers as a part of the physical inventory observation procedures.
What is the misstatement in valuation of the December 31, 2013, inventory for deluxe ring binders, assuming FIFO inventory valuation?
Explain how you will evaluate the reasonableness of total direct labor hours and manufacturing overhead in the ending inventory of finished goods.
Explain how you could test the direct labor dollars included in inventory as a part of the payroll and personnel tests.
Are standard cost records used for raw materials, direct labor, and manufacturing overhead?
The perpetual inventory system subtotals the quantity of inventory in the system and interfaces with the general ledger system on a daily basis.
The cost accounting records are often an essential area to audit in a manufacturing or construction company.
Identify whether each of the procedures is primarily a test of control or a substantive test.
After the auditor left the premises, several inventory tags were lost and were not included in the final inventory summary.
List six or more internal controls and tests of controls that can be used to test the effectiveness of internal controls over inventory.