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

Audit assurance, You are the auditor of ABC Company and the audit process i...

You are the auditor of ABC Company and the audit process is almost complete. The audit report is due to be signed next week. However, the following additional information on two ma

Goodwill, How would you value the Goodwill

How would you value the Goodwill

Companies modes of operation, Companies Modes of Operation Some compani...

Companies Modes of Operation Some companies (especially small ones) operate without any overtly expressed plan and simply carry out the business as always, responding to market

Definition of audit evidence, Definition of Audit Evidence "Audit evid...

Definition of Audit Evidence "Audit evidence" which is all the information used through the auditor in arriving on the conclusions on such the audit opinion is support, and in

What are the problems associated with intangible assets in, audit account?

audit account?

Audit evidence, four factors which influence the reliability of audit evide...

four factors which influence the reliability of audit evidence

Financial audit, In a financial audit, management assertions or financial s...

In a financial audit, management assertions or financial statement assertions is the set of information that the preparer of financial statements (management) is providing to anoth

Non-adjusting events - audit process, Non-Adjusting Events - Audit Process ...

Non-Adjusting Events - Audit Process Non-adjusting events are those that are indicative of conditions such arose than the balance sheet date as a decline in the market price o

Necessity of accountant, Necessity of Accountant The accountant is no...

Necessity of Accountant The accountant is not necessary To expand his enquiries beyond the information enclosed in the relevant documents as supplemented through such e

Financial instruments - ias 32 and ias 39, Financial Instruments - IAS 32 a...

Financial Instruments - IAS 32 and IAS 39 IAS 39 and IAS 32 are examinable to the extent such they deal along with the presentation and measurement of equity, debt or else con

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