Course Hero Logo

B verifying that the client has used proper inventory

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 69 - 72 out of 83 pages.

B.Verifying that the client has used properinventory pricing.C.Ascertaining the physical quantities ofinventory on hand.D.Verifying that all inventory owned by theclient is on hand at the time of the count.209.An auditor is verifying the existence of newlyacquired fixed assets recorded in the accountingrecords.Which of the following is the best evidenceto help achieve this objective?A.Documentary support obtained by vouchingentries to subsidiary records and invoices.491
B.Physical examination of a sample of newlyrecorded fixed assets.C.Oral evidence obtained by discussions withoperating management.D.Documentary support obtained by reviewingtitles and tax returns.210.Which of the following procedures is most relevant totesting the completeness assertion for prepaidinsurance?A.Testing whether insurance coverage exceeds thereplacement value of insured tangible property.B.Confirming insurance policies with carriers.C. Reconciling premium payments with cashdisbursement records.D. Agreeing total expense and unexpired premiumswith the general ledger.211.In a manufacturing company, which of the followingaudit procedures would give the least assurance ofthe valuation of inventory at the audit date?A.Testing the computation of standard overheadrates.B.Examining paid vendors' invoices.C.Reviewing direct labor rates.D.Obtaining confirmation of inventories pledgedunder loan agreements.212.When perpetual inventory records are maintained inquantities and in pesos, and internal accountingcontrol over inventory is weak, the auditor wouldprobablyA.want the client to schedule the physicalinventory count at the end of the year.492
B.insist that the client perform physical countsof inventory items several times during the year.C.increase the extent of tests for unrecordedliabilities at the end of the year.D.have to disclaim an opinion on the incomestatement for that year.213.In auditing plant assets and accumulateddepreciation for proper valuation, the auditor shoulddo all of the following, except:A.recalculate depreciation expense on a testbasis.B.physically inspect major plant assetsadditions.C.vouch major additions by reference tounderlying documentation.D.vouch repairs and maintenance expense on atest basis.214.To verify the proper value of costs charged to realproperty records for improvements to the property,the best source of evidence would be:A.inspection by the auditor of real propertyimprovements.B.a letter signed by the real property managerasserting the propriety of costs incurred.C.original invoices supporting entries into theaccounting records.D.a comparison of billed amounts to contractestimates.215.An auditor has accounted for a sequence of inventorytags and is now going to trace information on arepresentative number of tags to the physical493

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 83 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
N/A
Tags

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture