User Account

All Pages

ACC/492, Auditing

Assignment Help:
An auditor is conducting an audit of
the financial statements of a wholesale cosmetics distributor with an inventory consisting
of thousands of individual items. The distributor keeps its inventory in its own distribution
center and two public warehouses. An inventory computer file is maintained on a computer
disk and at the end of each day the file is updated. Each record of the inventory file
contains the following data:
1. Item number
2. Location of item
3. Description of item
[792] PART 4 / AUDITING THE TRANSACTION CYCLES
4. Quantity on hand
5. Cost per item
6. Date of last purchase
7. Date of last sale
8. Quantity sold during year
The auditor is planning to observe the distributor’s physical count of inventories as of a
given date. The auditor will have available a computer tape of the data on the inventory
file on the date of the physical count and a general-purpose computer software package.
Required
The auditor is planning to perform inventory substantive tests. Identify the inventory tests
and describe how use of the general-purpose software package and the tape of the inventory
file data might be helpful to the auditor in performing such tests. (Hint: You may wish
to refer to Chapter 12 as well as this chapter in answering this question.) Organize your
answer as follows:
make 2 colums: in the first title it"INventory Stbtantive Test: in the column "observe the physical count, makeinng and recording test counts when possible
in hte scond colum, titile it: "Software Might Be Helpful For Substantive Tests" and in it" determine which iteams are to be test counted by selecting a random sample of a representative number of items from =the inventory file as of the date of the physical count"

Related Discussions:- ACC/492

Audits and inspections, Q. What are the different methods available for col...

Q. What are the different methods available for collection and analyzing audit data? Q. Describe and explain common audit findings in the fields of: a. Informed consent proce

Adjusting events - audit process, Adjusting Events - Audit Process Adj...

Adjusting Events - Audit Process Adjusting events are those such give evidence of conditions such existed at the balance sheet date as the settlement of a court case than the

Presentation and disclosure - audit process, Presentation and Disclosure - ...

Presentation and Disclosure - Audit Process Specific presentation involves presentation in accordance along with the suitable IFRS/IAS or International Accounting Standards.

Dealings with directors and other parties, Dealings with Directors and Othe...

Dealings with Directors and Other Parties - Sundry Debtors and Loans Dealings along with directors and other related parties: The auditor's duties are follows as: i. The revi

Assurance Engagement, What is the meaning of it?

What is the meaning of it?

Case law about auditing, assume that auditors lost a civil lawsuit for dama...

assume that auditors lost a civil lawsuit for damages and the court found total losses of $5 million. if the auditors were determined to be 30 percent at fault and were the only so

Audit approach - audit of accounting estimates, Audit Approach - Audit of A...

Audit Approach - Audit of Accounting Estimates The accounting and auditing matters are mainly concerned along with recognizing the point in time at that the initial disclosure

Auditing, Please assist me with these assignments The auditors for Weston U...

Please assist me with these assignments The auditors for Weston University are conducting their audit for the fiscal year ended December 31, 2011. Specifically, the audit firm is n

Timing of tests of control, Timing of Tests of Control - AUDITOR should per...

Timing of Tests of Control - AUDITOR should perform tests of controls over a period of time which is adequate to determine whether, as of the date specified in management's report,

Statutory and non-statutory audit reports, Explain the purpose and content ...

Explain the purpose and content of a statutory audit report. Explain what recommendations you would make to the case study business Statuary and Non- Statuary audits In

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd