For each of the following, state whether it is a test of details of account balances or a test of details of disclosures. Then note for which assertion the test provides evidence.1. Inspect loan agreements under which an entity's inventories are pledged.2. Review inventory compilation for proper classification among raw materials, work in process, and finished goods.3. Observe the count of physical inventory.4. Trace test counts and tag control information to the inventory compilation.5. Inquire of management about issues related to LIFO liquidations.6. Review book-to-physical adjustments for possible misstatements.
What will be an ideal response?
1. Disclosures - Presentation, Rights and obligations
2. Disclosures - Classification and Presentation
3. Account balances - Existence
4. Account balances - Completeness, Valuation and allocation
5. Disclosures - Accuracy, Valuation and allocation
6. Account balances - Valuation and allocation
You might also like to view...
________ programs help employees integrate and transition to a new job.
A. Organizational citizenship B. Employee assistance C. Attribution D. Onboarding E. Proactive
The use of poor quality raw materials resulting in more time spent in production will result in:
a. unfavorable direct labor efficiency variance. b. unfavorable variable overhead efficiency variance. c. unfavorable direct labor rate variance. d. unfavorable fixed overhead efficiency variance.
The CCAA encourages creditors to cooperate with a view to saving a still viable but struggling business
Indicate whether the statement is true or false
Organizational design is
A. a process that always functions independently of strategy formulation. B. primarily focused on replacing a firm's competitive advantage with competitive parity. C. the process of creating, implementing, and modifying the structure of an organization. D. primarily focused on formulating effective strategies, not implementing them.