6One of the auditor's jobs during the physical inventory count of the client closing inventory is ________________ Question 6 options: a) Review the client's inventory count procedures b) Ask the client to submit the count sheet when done c) Sit back at the office while the client's employee do the count d) Do the count for their clients

One of the key responsibilities of an auditor during the physical inventory count of the client's…

Answered: One of the auditor's jobs during the…

Business

Accounting

One of the auditor's jobs during the physical inventory count of the client closing inventory is

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter5: Operating Activities: Purchases And Cash Payments

Section: Chapter Questions

Problem 1M

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18. SYSTEM DOCUMENTATION—EXPENDITURE CYCLE (MANUALPROCEDURES)The following describes the expenditure cycle manual procedures for a hypothetical company.The inventory control clerk examines the inventory records for items that must be replenished andprepares a two-part purchase requisition. Copy 1 ofthe requisition is sent to the purchasing department,and Copy 2 is filed.Upon receipt of the requisition, the purchasingclerk selects a supplier from the valid vendor file (reference file) and prepares a three-part purchase order.Copy 1 is sent to the supplier, Copy 2 is sent to theAP department where it is filed temporarily, andCopy 3 is filed in the purchasing department.A few days after the supplier ships the order, thegoods arrive at the receiving department. They areinspected, and the receiving clerk prepares a threepart receiving report describing the number andquality of the items received. Copy 1 of the receivingreport accompanies the goods to the stores, wherethey are secured. Copy…
The inventory control clerk examines the inventory records for items that must bereplenished and prepares a two-part purchase requisition. Copy 1 of the requisition issent to the purchasing department and Copy 2 is filed.Upon receipt of the requisition, the purchase clerk selects a supplier from the validvendor journal (reference file) and prepares a three-part purchase order. Copy 1 is sentto the supplier, Copy 2 is sent to the accounts payable department where it is filedtemporarily, and Copy 3 is filed in the purchasing department.A few days after the supplier ships the order, the goods arrive at the receivingdepartment. They are inspected and the receiving clerk prepares a three-part receivingreport describing the number and quality of the items received. Copy 1 of the receivingreport accompanies the goods to the warehouse, where they are secured and thereceiving report is filed. Copy 2 is sent to inventory control, where the clerk posts to theinventory records (journal) and files…
Which of the following should be done first when a customer order is received? Pull the items from the warehouse and prepare them for shipping Check to see if the items orders are available in the warehouse Prepare a bill of lading Approve the customer's credit
SYSTEM DOCUMENTATION-EXPENDITURE CYCLE (MANUAL PROCEDURES)The following describes the expenditure cycle manual procedures for a hypothetical company. The inventory control clerk examines the inventory records for items that must be replenished and prepares a two-part purchase requisition. Copy 1 of the requisition is sent to the purchasing department, and Copy 2 is filed. Upon receipt of the requisition, the purchasing clerk selects a supplier from the valid vendor file (reference file) and prepares a three-part purchase order. Copy 1 is sent to the supplier,Copy 2 is sent to the AP department where it is filed temporarily, and Copy 3 is filed in the purchasing department. A few days after the supplier ships the order, the goods arrive at the receiving department. They are inspected, and the receiving clerk prepares a three-part receiving report describing the number and quality of the items received. Copy 1 of the receiving report accompanies the goods to the stores, where they are…
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Question 2: Following are audit procedures commonly per- formed in the inventory and warehousing cycle for a manufacturing company: 1. Read the client’s physical inventory instructions and observe whether they are being followed by those responsible for counting the inventory. 2. Use audit software to compute inventory turnover by major product line and com- pare it to turnover in the prior year. 3. Account for a sequence of inventory tags and trace each tag to the physical inventory to make sure it actually exists. 4. Compare the client’s count of physical inventory at an interim date with the per- petual inventory master file. 5. Trace the auditor’s test counts recorded in the audit files to the final inventory com- pilation and compare the tag number, description, and quantity. 6. Compare the unit price on the final inventory summary with vendors’ invoices. 7. Account for a sequence of raw material requisitions and examine each requisition for an authorized approval. 8. Trace the…
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