An Audit Supervisor Reviewed the Work Performed by the Staff

question 843

Multiple Choice

An audit supervisor reviewed the work performed by the staff to determine if the audit was adequately performed. The supervisor accomplished this by primarily reviewing which of the following?

• A) Checklists.
• B) Working papers.
• C) Analytical procedures.
• D) Financial statements.

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Definitions:

Perpetual Inventory System

A method of maintaining real-time records of inventory balances, updating the accounts after each purchase or sale.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated either by a physical count or by using inventory accounting methods.

LIFO Perpetual

An inventory valuation method that records inventory transactions continuously and assumes the last items purchased are the first to be sold.

Cost Of Goods Sold

The immediate expenses incurred in producing goods that a company sells, including materials and the workforce.