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

Statistical sampling-Advantages, Statistical sampling – Advantages a) It ...

Statistical sampling – Advantages a) It is scientific and defensible; b) It provides a precise mathematical statement about probabilities of being correct; c) It is efficie

Audit procedures, audit procedure for shares or common stock

audit procedure for shares or common stock

Auditors procedures - audit process, Auditors Procedures - Audit Process ...

Auditors Procedures - Audit Process The relevant authority on post balance sheet events is ISA. The preparation of loss and profit account and balance sheet will forever inclu

Specialized audit situations, Specialized Audit Situations Companies c...

Specialized Audit Situations Companies carry on thousands of different types of trade, business or professional activities.  It is not possible in a manual on general auditing

Audit report, You are auditing XYZ company for the year ended 12/31/2012 an...

You are auditing XYZ company for the year ended 12/31/2012 and will be expressing an opinion on their financial statements as of that date. You completed your field work on 1/21/13

Compare forensic investigations and financial audits, Question 1: "Whil...

Question 1: "While their roles sometimes overlap, financial statement auditors and forensic accounting investigators tackle financial fraud issues from different perspectives,

Vouching, How to vouch

How to vouch

Explain how to do an internal audit effectively, With internal audit we alw...

With internal audit we always require to be careful of any manipulations within the company itself. Errors & frauds within the company cannot be denied /overlooked at any cost.

Ias 37 provisions and contingent assets, IAS 37 Provisions, Contingent Asse...

IAS 37 Provisions, Contingent Assets and Contingent Liabilities IAS 37 was mattered in order to deal along with the subjective area of provision and to prevent the requiremen

Valuation and allocation - audit process, Valuation and Allocation - Audit ...

Valuation and Allocation - Audit Process As we saw assets are usually valued at cost or a valuation less a provision for usage or loss of value.  We have to ensure therefore t

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