Inventory Cycle - CPA Auditing and Attestation (AUD)
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The warehouse manager is responsible for ensuring that high-end merchandise is in the locked section of the building. This is an example of
The warehouse manager is responsible for ensuring that high-end merchandise is in the locked section of the building. This is an example of
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Physical control provides a physical barrier to the asset. They consist of policies such as insurance, or kinetic barriers such as locks, secure areas, etc.
Physical control provides a physical barrier to the asset. They consist of policies such as insurance, or kinetic barriers such as locks, secure areas, etc.
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A physical inventory is taken on a “cut-off date”. This procedure is necessary to ensure.
A physical inventory is taken on a “cut-off date”. This procedure is necessary to ensure.
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Taking a physical inventory at a cut-off date ensures that all of the inventory that is appropriate to be reported will be included in the financial statements. The auditor sets the cut-off date and traces the amount to the accounting records to ensure that the records include all the inventory.
Taking a physical inventory at a cut-off date ensures that all of the inventory that is appropriate to be reported will be included in the financial statements. The auditor sets the cut-off date and traces the amount to the accounting records to ensure that the records include all the inventory.
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A inventory system is best used for high dollar items
A inventory system is best used for high dollar items
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A perpetual inventory provides a real time record of inventory values. Items purchased are recorded to the inventory account at the time of purchase. High dollar inventory items are particularly important to properly value the inventory account.
A perpetual inventory provides a real time record of inventory values. Items purchased are recorded to the inventory account at the time of purchase. High dollar inventory items are particularly important to properly value the inventory account.
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Inquiries of warehouse personnel concerning possible obselete or slow moving inventory items provide assurance about management's assertion of:
Inquiries of warehouse personnel concerning possible obselete or slow moving inventory items provide assurance about management's assertion of:
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Inquiries of warehouse personnel concerning possible obselete or slow moving inventory items provide assurance about management's assertion of valuation (has the inventory been properly valued and recorded.)
Inquiries of warehouse personnel concerning possible obselete or slow moving inventory items provide assurance about management's assertion of valuation (has the inventory been properly valued and recorded.)
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An auditor generally tests the segregation of duties related to inventory by:
An auditor generally tests the segregation of duties related to inventory by:
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The independent auditor's direct personal knowledge, based on personal inquiry and observation, are auditing procedures commonly used to test the segregation of duties.
The independent auditor's direct personal knowledge, based on personal inquiry and observation, are auditing procedures commonly used to test the segregation of duties.
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Of the following duties included in the inventory cycle, which should be segregated to maintain proper internal controls?
Of the following duties included in the inventory cycle, which should be segregated to maintain proper internal controls?
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All of these duties, in addition to shipping, would need to be segregated in order to maintain proper internal controls.
All of these duties, in addition to shipping, would need to be segregated in order to maintain proper internal controls.
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Of the following duties included in the inventory cycle, which should be segregated to maintain proper internal controls?
Of the following duties included in the inventory cycle, which should be segregated to maintain proper internal controls?
Tap to reveal answer
All of these duties, in addition to shipping, would need to be segregated in order to maintain proper internal controls.
All of these duties, in addition to shipping, would need to be segregated in order to maintain proper internal controls.
← Didn't Know|Knew It →
The warehouse manager is responsible for ensuring that high-end merchandise is in the locked section of the building. This is an example of
The warehouse manager is responsible for ensuring that high-end merchandise is in the locked section of the building. This is an example of
Tap to reveal answer
Physical control provides a physical barrier to the asset. They consist of policies such as insurance, or kinetic barriers such as locks, secure areas, etc.
Physical control provides a physical barrier to the asset. They consist of policies such as insurance, or kinetic barriers such as locks, secure areas, etc.
← Didn't Know|Knew It →
A physical inventory is taken on a “cut-off date”. This procedure is necessary to ensure.
A physical inventory is taken on a “cut-off date”. This procedure is necessary to ensure.
Tap to reveal answer
Taking a physical inventory at a cut-off date ensures that all of the inventory that is appropriate to be reported will be included in the financial statements. The auditor sets the cut-off date and traces the amount to the accounting records to ensure that the records include all the inventory.
Taking a physical inventory at a cut-off date ensures that all of the inventory that is appropriate to be reported will be included in the financial statements. The auditor sets the cut-off date and traces the amount to the accounting records to ensure that the records include all the inventory.
← Didn't Know|Knew It →
A inventory system is best used for high dollar items
A inventory system is best used for high dollar items
Tap to reveal answer
A perpetual inventory provides a real time record of inventory values. Items purchased are recorded to the inventory account at the time of purchase. High dollar inventory items are particularly important to properly value the inventory account.
A perpetual inventory provides a real time record of inventory values. Items purchased are recorded to the inventory account at the time of purchase. High dollar inventory items are particularly important to properly value the inventory account.
← Didn't Know|Knew It →
Inquiries of warehouse personnel concerning possible obselete or slow moving inventory items provide assurance about management's assertion of:
Inquiries of warehouse personnel concerning possible obselete or slow moving inventory items provide assurance about management's assertion of:
Tap to reveal answer
Inquiries of warehouse personnel concerning possible obselete or slow moving inventory items provide assurance about management's assertion of valuation (has the inventory been properly valued and recorded.)
Inquiries of warehouse personnel concerning possible obselete or slow moving inventory items provide assurance about management's assertion of valuation (has the inventory been properly valued and recorded.)
← Didn't Know|Knew It →
An auditor generally tests the segregation of duties related to inventory by:
An auditor generally tests the segregation of duties related to inventory by:
Tap to reveal answer
The independent auditor's direct personal knowledge, based on personal inquiry and observation, are auditing procedures commonly used to test the segregation of duties.
The independent auditor's direct personal knowledge, based on personal inquiry and observation, are auditing procedures commonly used to test the segregation of duties.
← Didn't Know|Knew It →
The warehouse manager is responsible for ensuring that high-end merchandise is in the locked section of the building. This is an example of
The warehouse manager is responsible for ensuring that high-end merchandise is in the locked section of the building. This is an example of
Tap to reveal answer
Physical control provides a physical barrier to the asset. They consist of policies such as insurance, or kinetic barriers such as locks, secure areas, etc.
Physical control provides a physical barrier to the asset. They consist of policies such as insurance, or kinetic barriers such as locks, secure areas, etc.
← Didn't Know|Knew It →
A physical inventory is taken on a “cut-off date”. This procedure is necessary to ensure.
A physical inventory is taken on a “cut-off date”. This procedure is necessary to ensure.
Tap to reveal answer
Taking a physical inventory at a cut-off date ensures that all of the inventory that is appropriate to be reported will be included in the financial statements. The auditor sets the cut-off date and traces the amount to the accounting records to ensure that the records include all the inventory.
Taking a physical inventory at a cut-off date ensures that all of the inventory that is appropriate to be reported will be included in the financial statements. The auditor sets the cut-off date and traces the amount to the accounting records to ensure that the records include all the inventory.
← Didn't Know|Knew It →
A inventory system is best used for high dollar items
A inventory system is best used for high dollar items
Tap to reveal answer
A perpetual inventory provides a real time record of inventory values. Items purchased are recorded to the inventory account at the time of purchase. High dollar inventory items are particularly important to properly value the inventory account.
A perpetual inventory provides a real time record of inventory values. Items purchased are recorded to the inventory account at the time of purchase. High dollar inventory items are particularly important to properly value the inventory account.
← Didn't Know|Knew It →
Inquiries of warehouse personnel concerning possible obselete or slow moving inventory items provide assurance about management's assertion of:
Inquiries of warehouse personnel concerning possible obselete or slow moving inventory items provide assurance about management's assertion of:
Tap to reveal answer
Inquiries of warehouse personnel concerning possible obselete or slow moving inventory items provide assurance about management's assertion of valuation (has the inventory been properly valued and recorded.)
Inquiries of warehouse personnel concerning possible obselete or slow moving inventory items provide assurance about management's assertion of valuation (has the inventory been properly valued and recorded.)
← Didn't Know|Knew It →
An auditor generally tests the segregation of duties related to inventory by:
An auditor generally tests the segregation of duties related to inventory by:
Tap to reveal answer
The independent auditor's direct personal knowledge, based on personal inquiry and observation, are auditing procedures commonly used to test the segregation of duties.
The independent auditor's direct personal knowledge, based on personal inquiry and observation, are auditing procedures commonly used to test the segregation of duties.
← Didn't Know|Knew It →
Of the following duties included in the inventory cycle, which should be segregated to maintain proper internal controls?
Of the following duties included in the inventory cycle, which should be segregated to maintain proper internal controls?
Tap to reveal answer
All of these duties, in addition to shipping, would need to be segregated in order to maintain proper internal controls.
All of these duties, in addition to shipping, would need to be segregated in order to maintain proper internal controls.
← Didn't Know|Knew It →
The warehouse manager is responsible for ensuring that high-end merchandise is in the locked section of the building. This is an example of
The warehouse manager is responsible for ensuring that high-end merchandise is in the locked section of the building. This is an example of
Tap to reveal answer
Physical control provides a physical barrier to the asset. They consist of policies such as insurance, or kinetic barriers such as locks, secure areas, etc.
Physical control provides a physical barrier to the asset. They consist of policies such as insurance, or kinetic barriers such as locks, secure areas, etc.
← Didn't Know|Knew It →
A physical inventory is taken on a “cut-off date”. This procedure is necessary to ensure.
A physical inventory is taken on a “cut-off date”. This procedure is necessary to ensure.
Tap to reveal answer
Taking a physical inventory at a cut-off date ensures that all of the inventory that is appropriate to be reported will be included in the financial statements. The auditor sets the cut-off date and traces the amount to the accounting records to ensure that the records include all the inventory.
Taking a physical inventory at a cut-off date ensures that all of the inventory that is appropriate to be reported will be included in the financial statements. The auditor sets the cut-off date and traces the amount to the accounting records to ensure that the records include all the inventory.
← Didn't Know|Knew It →