Exam 9: Production Cycle

The auditors of Mikel's Shops obtained the following information when performing cutoff testing procedures during their observation of Mikel's physical inventory count at December 31,2009: When comparing the cutoff information to the sales records,the auditors found that all these shipments were recorded as 2011 sales.The goods shipped on bills of lading 1235 and 1236 were not counted in the inventory,but the goods on bill of lading 1237 and 1238 were included. Required: Prepare the appropriate journal entry to correct the cutoff error.

(Essay)

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Question 41

Which of the following steps would not normally be included in a program for a physical inventory observation?

(Multiple Choice)

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Question 42

To execute job production,a foreperson would typically not need

(Multiple Choice)

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Question 43

L.Martinez,CPA,was auditing a client,Marvelous Retail Company and selected a sample of inventory items from the perpetual records and vouched additions to receiving reports.This procedure was intended to satisfy which POCAOB assertion?

(Multiple Choice)

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Question 44

The information for inventory record keeping typically comes from all of the following sources except

(Multiple Choice)

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Question 45

A sample from the perpetual inventory records meets the _____________________________ requirement to determine whether all recorded transactions are supported by reports and documents.

(Short Answer)

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Question 46

With a sample of open and closed production cost reports,vouching labor cost to ____ is a test for .

(Short Answer)

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Question 47

Prepare an audit plan for inventory pricing and compilation.

(Essay)

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Question 48

An auditor selected an inventory item on the warehouse floor,test counted it,and traced the count to the final inventory compilation.The auditor most likely was testing the PCAOB assertion of

(Multiple Choice)

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Question 49

Counting different parts of inventory at different times of the year is called

(Multiple Choice)

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Question 50

An auditor reviews job cost sheets to test which transaction assertion?

(Multiple Choice)

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Question 51

An auditor would vouch inventory on the inventory status report to the vendor's invoice to obtain evidence concerning management's balance assertions about

(Multiple Choice)

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Question 52

Materials requisitions should be compared in the department with the ____ on the production order.

(Short Answer)

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Question 53

The tests of controls for inventory records would include the following procedures. A. Existence. B. Rights. C. Completeness. D. Valuation. E. Presentation and disclosure.

(Essay)

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Question 54

Counting inventory on the warehouse floor and tracing the count to the inventory compilation provides evidence to support which management (PCAOB)assertion?

(Multiple Choice)

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Question 55

An auditor selected a product recorded in the finished goods perpetual inventory subsidiary account.The auditor went to the warehouse and counted the product and compared this amount with the amount in the finished goods perpetual inventory subsidiary account.Which ASB balance assertion is the auditor most likely testing?

(Multiple Choice)

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Question 56

Which of the following auditing procedures probably would provide the most reliable evidence concerning the entity's assertion of rights and obligations related to inventories?

(Multiple Choice)

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Question 57

When inventory quantities are determined solely by means of a physical count,it is necessary for the auditor to be present at the time of the count.

(True/False)

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Question 58

If an auditor was not present at a new client's inventory count,the auditor has no obligation to test the inventory.

(True/False)

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Question 59

An auditor most likely would analyze inventory turnover rates to obtain evidence concerning management's balance assertions about

(Multiple Choice)

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Question 60

Showing 41 - 60 of 98

Which of the following steps would not normally be included in a program for a physical inventory observation?

To execute job production,a foreperson would typically not need

L.Martinez,CPA,was auditing a client,Marvelous Retail Company and selected a sample of inventory items from the perpetual records and vouched additions to receiving reports.This procedure was intended to satisfy which POCAOB assertion?

The information for inventory record keeping typically comes from all of the following sources except

A sample from the perpetual inventory records meets the _____________________________ requirement to determine whether all recorded transactions are supported by reports and documents.

With a sample of open and closed production cost reports,vouching labor cost to ____ is a test for .

Prepare an audit plan for inventory pricing and compilation.

An auditor selected an inventory item on the warehouse floor,test counted it,and traced the count to the final inventory compilation.The auditor most likely was testing the PCAOB assertion of

Counting different parts of inventory at different times of the year is called

An auditor reviews job cost sheets to test which transaction assertion?

An auditor would vouch inventory on the inventory status report to the vendor's invoice to obtain evidence concerning management's balance assertions about

Materials requisitions should be compared in the department with the ____ on the production order.

The tests of controls for inventory records would include the following procedures. A. Existence. B. Rights. C. Completeness. D. Valuation. E. Presentation and disclosure.

Counting inventory on the warehouse floor and tracing the count to the inventory compilation provides evidence to support which management (PCAOB)assertion?

Which of the following auditing procedures probably would provide the most reliable evidence concerning the entity's assertion of rights and obligations related to inventories?

When inventory quantities are determined solely by means of a physical count,it is necessary for the auditor to be present at the time of the count.

If an auditor was not present at a new client's inventory count,the auditor has no obligation to test the inventory.

An auditor most likely would analyze inventory turnover rates to obtain evidence concerning management's balance assertions about

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Exam 9: Production Cycle

Which of the following steps would not normally be included in a program for a physical inventory observation?

To execute job production,a foreperson would typically not need

L.Martinez,CPA,was auditing a client,Marvelous Retail Company and selected a sample of inventory items from the perpetual records and vouched additions to receiving reports.This procedure was intended to satisfy which POCAOB assertion?

The information for inventory record keeping typically comes from all of the following sources except

A sample from the perpetual inventory records meets the _____________________________ requirement to determine whether all recorded transactions are supported by reports and documents.

With a sample of open and closed production cost reports,vouching labor cost to ________________________________ is a test for ____________________________.

Prepare an audit plan for inventory pricing and compilation.

An auditor selected an inventory item on the warehouse floor,test counted it,and traced the count to the final inventory compilation.The auditor most likely was testing the PCAOB assertion of

Counting different parts of inventory at different times of the year is called

An auditor reviews job cost sheets to test which transaction assertion?

An auditor would vouch inventory on the inventory status report to the vendor's invoice to obtain evidence concerning management's balance assertions about

Materials requisitions should be compared in the __________________________________ department with the ______________________________________ on the production order.

The tests of controls for inventory records would include the following procedures. A. Existence. B. Rights. C. Completeness. D. Valuation. E. Presentation and disclosure.

Counting inventory on the warehouse floor and tracing the count to the inventory compilation provides evidence to support which management (PCAOB)assertion?

Which of the following auditing procedures probably would provide the most reliable evidence concerning the entity's assertion of rights and obligations related to inventories?

When inventory quantities are determined solely by means of a physical count,it is necessary for the auditor to be present at the time of the count.

If an auditor was not present at a new client's inventory count,the auditor has no obligation to test the inventory.

An auditor most likely would analyze inventory turnover rates to obtain evidence concerning management's balance assertions about

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

With a sample of open and closed production cost reports,vouching labor cost to ____ is a test for .

Materials requisitions should be compared in the department with the ____ on the production order.