The Tests of Controls for Inventory Records Would Include the Following

question 63

Short Answer

The tests of controls for inventory records would include the following procedures.
A.Existence.
B.Rights.
C.Completeness.
D.Valuation.
E.Presentation and disclosure.For each of the procedures,choose the letter of the correct PCAOB assertion(s).Only one letter per procedure should be used. ----- $\quad$ 1. Trace a sample of sales invoices to perpetual inventory record entry of issue.
----- $\quad$ 2. Select a sample of inventory item from perpetual records and vouch additions to receiving reports.
----- $\quad$ 3. Select a sample of shipping documents and review the accounting summary of the quantities and prices.
----- $\quad$ 4. Trace posting of sample of sales invoices to amounts in general ledger.
----- $\quad$ 5. Review the appropriateness of standard costs to price inventory issues and cost of goods sold.

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Definitions:

Organic Portion

The component of a substance or material that is derived from living organisms and contains carbon.

Pneumatophores

Specialized aerial roots typically found in mangrove species that allow gas exchange in waterlogged conditions.

Aerial Roots

Roots that grow above the ground and are typically seen in plants living in swampy or moist environments, facilitating respiration and support.

Flooded Soils

Soils that have been oversaturated with water, leading to conditions of hypoxia (low oxygen) which affect plant and microbial community dynamics.