An auditor will usually trace the details of the test counts made during the observation of the physical inventory count to a final inventory schedule. This audit procedure is undertaken to provide evidence that items physically present and observed by the auditor at the time of the physical inventory count are:
A. physically present at the time of the preparation of the final inventory schedule.
B. not obsolete.
C. owned by the entity.
D. included in the final inventory schedule.
Answer: D
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To record an adjustment for income tax for the period, Corporate Income Tax is debited and Income Tax Expense is credited
a. True b. False Indicate whether the statement is true or false
An investor is reading the financial statements of the Stankey Corporation and observes that the statements are accompanied by an auditor's unqualified report. From this, the investor may conclude that:
A. the auditor is satisfied that Stankey will be highly profitable in the future. B. the auditor is certain that Stankey's financial statements have been prepared accurately and that all account balances are precisely correct. C. any disputes over significant accounting issues have been settled to the auditor's satisfaction. D. the auditor has determined that Stankey's management is not qualified to lead the company.
What should determine whether an allocation base is a good cost driver?
A) Whether or not the base can be measured in terms of "hours". B) Whether or not the base can be applied plantwide. C) Whether or not the base is unique to the overhead being allocated. D) Whether or not there is a cause-and-effect relationship between the base and the overhead cost.
The rewards of good self-esteem include
a. becoming easily frustrated or defensive. b. taking pride in accomplishments. c. feeling weak and incompetent. d. expressing few emotions.