Chapter 21 - – Instructions to count personnel – Proper supervision – Independent internal verification of counts – Reconciliation to

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Audit of Inventory Analytical Procedures and Physical Inventory Count Pages 704-709
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Analytical Procedures Gross margin analysis Inventory turnover analysis (days sales in inventory) To which assertion is this analysis most closely related? How should the auditor respond to differences noted in the analysis? Relevance to today’s economy
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Physical Inventory Does the auditor count all of the client’s inventory? What are the auditor’s responsibilities with respect to inventory counts?
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Physical Inventory—Planning Considerations Client controls over count
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Unformatted text preview: – Instructions to count personnel – Proper supervision – Independent internal verification of counts – Reconciliation to master file – Control over tags and count sheets • Movement • Spet? (e.g., when to use one, what do you look for in a spet) • Off-site inventory (i.e., inventory stored in an independent warehouse—do you need to do the same type of inventory observation? Characteristics of a warehouse where you can use less competent evidential matter.) • Timing Physical Inventory Count--...
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This note was uploaded on 02/09/2011 for the course ACCT 407 taught by Professor Smith during the Spring '11 term at University of Louisiana at Lafayette.

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Chapter 21 - – Instructions to count personnel – Proper supervision – Independent internal verification of counts – Reconciliation to

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