Which of the following would not be an example of an inventory record error or

Which of the following would not be an example of an

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67.Which of the following would notbe an example of an inventory record error or fraud? A. Unrecorded receipts or shipments.B. Incorrect date of recording.C. Fictitious sales or adjustments.D. Incorrect sales price. 68.Tracing a sample of inventory receiving reports to the perpetual inventory record entry achieves the specific ASB balance assertion of 69.Specific assertions typical of inventory and cost of sales accounts would notinclude that inventory
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70.An increase in inventory turnover probably indicates 71.A cutoff test reveals goods received and counted in inventory but notrecorded in purchases. The effect on the financial statements is A. Net income is overstated.B. Net income is understated.C. There is no effect because the inventory records were adjusted to the physical count.D. Net income is not affected until the subsequent period. 72. The overall production starts with production planning, which usually is based on a _______________________________________. ________________________________________73.Production planning interacts with the preparation of ____________________________________. ________________________________________74.A production order usually includes a ________________________________. ________________________________________75.________________________________ are used by the purchasing department to place orders for materials. ________________________________________76.The function of _________________________________ refers to comparing the physical count of inventory to the perpetual inventory records. ________________________________________77._____________________________ can be used in connection with knowledge of the shape of management's plans for the year under audit. ________________________________________78.Production reports of finished units should be signed by the __________________________________ and finished goods inventory custodian and forwarded to _______________________________. ________________________________________79.Materials requisitions should be compared in the __________________________________ department with the ______________________________________ on the production order. ________________________________________80.Tracing production cost accumulation forward into the production cost reports in the cost accounting department is a test for ____________________________. ________________________________________81.With a sample of open and closed production cost reports, vouching labor cost to ________________________________ is a test for ____________________________. ________________________________________82.A material error or fraud in inventory typically has a _________________________________ on financial statements. ________________________________________83.Auditors ______________________________ the inventory taking and make ________________________________, but they seldom _____________________________ the entire inventory. ________________________________________
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84.Selecting inventory from locations on the warehouse floor, obtaining a test count, and tracing the count to the final inventory compilation produces evidence for the _____________________________ ASB balance assertion. ________________________________________85.The physical observation procedures for inventory are principally designed to audit for the balance assertions of ____________________________, ____________________________, and ____________________________. ________________________________________86.An inventory trial balance can be used to scan for __________________________________ and as a population for sample selection for the ______________________________________. ________________________________________87.A sample from the source documents meets the _____________________________ requirement to determine whether transactions were actually recorded in the inventory records. ________________________________________88.A sample from the perpetual inventory records meets the _____________________________
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  • Spring '12
  • janigrt
  • perpetual inventory records, Cycle count

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