During the Observation of the Inventory Count, the Auditor Has

question 23

Multiple Choice

During the observation of the inventory count, the auditor has no responsibility to:

• A) watch for damaged and obsolete inventory items.
• B) make some test counts of inventory quantities.
• C) supervise the taking of the inventory.
• D) the auditor has responsibility for all of the above

Distinguish between different types of assets: fixed assets, intangible assets, natural resources, and none of these.

Record and understand the effects of asset impairment, particularly goodwill impairment.

Understand and calculate depletion expense for natural resources.

Calculate and journalize depreciation, depletion, and amortization expenses.