Solved

The Tests of Controls for Inventory Records Would Include the Following

Question 82

Matching

The tests of controls for inventory records would include the following procedures.
For each of the procedures, choose the letter of the correct PCAOB assertion(s). Only one letter per procedure should be used.

Premises:

Responses:

Trace a sample of sales invoices to perpetual inventory record entry of issue.

Existence.

Select a sample of inventory item from perpetual records and vouch additions to receiving reports.

Rights.

Select a sample of shipping documents and review the accounting summary of the quantities and prices.

Completeness.

Trace posting of sample of sales invoices to amounts in general ledger.

Valuation.

Review the appropriateness of standard costs to price inventory issues and cost of goods sold.

Presentation and disclosure.

Premises:

Trace a sample of sales invoices to perpetual inventory record entry of issue.

Select a sample of inventory item from perpetual records and vouch additions to receiving reports.

Select a sample of shipping documents and review the accounting summary of the quantities and prices.

Trace posting of sample of sales invoices to amounts in general ledger.

Review the appropriateness of standard costs to price inventory issues and cost of goods sold.

Responses:

Existence.

Rights.

Completeness.

Valuation.

Presentation and disclosure.

Correct Answer:

Premises:

Responses:

Trace a sample of sales invoices to perpetual inventory record entry of issue.

Select a sample of inventory item from perpetual records and vouch additions to receiving reports.

Select a sample of shipping documents and review the accounting summary of the quantities and prices.

Trace posting of sample of sales invoices to amounts in general ledger.

Review the appropriateness of standard costs to price inventory issues and cost of goods sold.

Related Questions

Q72: Tracing production cost accumulation forward into the

Q73: The auditors of Mikel's Shops obtained

Q74: Production reports of finished units should be

Q75: The function of _ refers to comparing

Q76: The cost accounting department at Blue Manufacturing

Q77: Which of the following procedures would be

Q78: Prepare an audit plan for the observation

Q79: With a sample of open and closed

Q80: The overall production starts with production planning,

Q81: The tests of controls for inventory records

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

Scan the QR code to install the App and get 2 free unlocks

Unlock quizzes for free by uploading documents