auditing final

this department counts, inspects and receipt goods and notifies the accounting department of the amount received and placed in stock

STORES

in planning for counts of physical inventory the senior auditor in charge should

estimate the time required, determine the date of the counts, consider if a specialist is needed

labor and machine time devoted to a particular production job is accumulated on

job time ticket

important aspects of the control environment related to inventories and COGS

a committment to competence, integrity, structure

inventory count tags are good for stopping what

accidental ommission of goods from the count, double counting of goods

a sample of recorded retirements will be tested for proper--- by executives written on a serially numbered retirement work order

authorization

controls that assure the fair valuation of inventory are found in

both the purchases and conversion

auditors may engage in the direct written communication with consignors to

confirm the quantity and value, disclose client liability for unremitted sales proceeds

auditors record the serial number of the final receiving and shipping documents issued before taking inventory - what assertion

cutoff

to test the accuracy of the repairs and maintenance expense accounts, auditors trace expenses to

labor time records, vendors incoives

when bank balances and indebtedness are confirmed --- of inventories to secure bank loans be brought to light

pledging (inventory as collateral)

the document that authorizes the production of specific products is the

production orders

a purchase transaction begins with the

purchase requisition

the approach typically used by auditors to audit depreciation is ----

review and test managements process of developing the estimate

many companies have established --- cost systems that help identify the causes of ineffectiveness and waste through a study of variances between actual and standard costs

standard cost systems

a prenumbered requisition for all items passing out of its hands should be required by the --- department to serve as a signed receipt from the department accepting the goods

stores

for any inherent risks identified by the auditors that involve the possibility of fraud, auditors shoud--

understand the programs and controls established by management to control the risk, design an appropriate response to the risk

the audit of depreciation relates most directly to the audit objective of

valuation or allocation

to test additions of PPE auditors need to:

vouch purchases to invoices and toher supporting docs, recompute extensions, footings, discounts on invoices and supporting docs

auditors should inspect inventory to determine its existence and condition and make test counts ---

while attending the clients physical inventory count