In tracing beginning inventory balances to prior year working papers, _______.
A) the auditor should make certain that any audit adjustments agreed upon in the prior year did in fact get recorded
B) the auditor should make certain that any audit adjustments agreed upon in the subsequent years did in fact get recorded
C) the auditor should be mindful of the relationship between inventory sales and accounts payable
D) the auditor should be mindful of the relationship between inventory sales and notes payable
Correct Answer:
Verified
Q41: With a manufacturer, wholesaler, or retailer, _.
A)inventory
Q42: The auditor should be alert to _.
A)incentives
Q43: Many elements of valuing inventory _.
A)should be
Q44: The audit strategy pertaining to inventory is
Q45: Consigned inventory held by the client, _.
A)should
Q47: The inherent risk of material misstatement arising
Q48: An inventory markdown by a client _.
A)could
Q49: If ending inventory is overstated, _.
A)cost of
Q50: Weak internal control over inventory _.
A)may lead
Q51: Many of the controls over inventory _.
A)overlap
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