Question

During an inventory observation, it is sufficient for an auditor to only make her own counts....

During an inventory observation, it is sufficient for an auditor to only make her own counts.

True or False

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

During an inventory observation the auditor needs to make the counts of the total inventory present in physical as well as in the books of account. Along with the count required to observe whether the inventory is a moving item and none of the inventory is obsolete.

The auditor is required to observe whether there are any damage goods which are present in the inventory. Because if the goods are damaged then its value will reduce to the replacement value.

Also it is the duty of the auditor to observe weather the inventory is located at a place whereby it will not be affected by any environmental condition like heat or rain. Daughter also needs to observe any slow moving items whether it's condition is usable or not.

Therefore the correct option is False as it is not sufficient for an auditor to only make counts.

If you find the answer helpful please upvote.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
During observation of a client’s year end physical inventory, the auditor notes that shipping document 8702...
During observation of a client’s year end physical inventory, the auditor notes that shipping document 8702 was the last shipment for the year and that receiving report 10163 was the last receiving report for the year. Explain how the information gathered would be used in performing an inventory cutoff test.
The client received a large shipment of inventory on December 31st during the inventory observation. What...
The client received a large shipment of inventory on December 31st during the inventory observation. What procedures should the auditor perform to verify that the acquisition of inventory is properly accounted for?
In the audit of inventory the auditor must perform important procedures prior to the actual observation....
In the audit of inventory the auditor must perform important procedures prior to the actual observation. Identify the steps the auditor must take prior to the day the inventory is actually counted.
During the course of the audit the auditor noted that the company has switched its costing...
During the course of the audit the auditor noted that the company has switched its costing of inventory method and method of depreciation that had been traditionally used for many years. The switch did not materially impact the current year financial statements. The auditor also noted that the company had become the subject of a major takeover bid by a rival. This information was not disclosed in the financial statements but could be of concern to shareholders in understanding the...
Equivalent units are defined as the number of units completed and transferred out of work-in-process inventory...
Equivalent units are defined as the number of units completed and transferred out of work-in-process inventory during the current period. A) True B) False Internal service centers generate only costs and no revenues. A) True B) False The step method of cost allocation recognizes that service centers provide support to other service centers. A) True B) False The equivalent units of production must be computed before the value of ending inventory can be determined in a process costing system. A)...
1.Only those who trade on insider information for their own benefit are guilty of a criminal...
1.Only those who trade on insider information for their own benefit are guilty of a criminal violation involving that insider information. True or False
Under the perpetual system of inventory, the cost of merchandise sold is only calculated periodically when...
Under the perpetual system of inventory, the cost of merchandise sold is only calculated periodically when a physical count of inventory is done. True False Which type of control is designed to discover any problems or fraud after it arises? Detective Segregation of Duties Risk Assessment Just-in-Case inventory seeks to create a buffer in inventory against unforeseen shipping delays and unforeseen demand by customers. True False Preventive
Only cooperative members make and implement important decisions. A. True B. False
Only cooperative members make and implement important decisions. A. True B. False
true or false- 1. in a perpetual system, the only acceptable method for computing ending inventory...
true or false- 1. in a perpetual system, the only acceptable method for computing ending inventory is FIFO. Explain reason in detail.
The cost of goods completed during a period is transferred from the Finished Goods Inventory account...
The cost of goods completed during a period is transferred from the Finished Goods Inventory account to Cost of Goods Sold. true or false
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT