Audit Planning Requires That the Auditor Consider Possible Inventory Errors

question 50

Essay

Audit planning requires that the auditor consider possible inventory errors or frauds that might occur that could affect the financial statements.For each of the types of inventory errors listed in the following table,indicate what would be the possible effect in the inventory and cost of sales accounts: overstated,understated,or no effect.

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Definitions:

Sac Fungus

A group of fungi characterized by the production of spores in sac-like structures called asci.

Conidia

Asexual, non-motile spores of fungi that are often produced in large numbers and serve as the primary means of reproduction for many fungal species.

Cuplike Structure

A cuplike structure is a physical form resembling a cup, often found in biological organisms as part of organs or within certain plant species to collect or hold substances.

Sexual Reproductive

A biological process involving the combination of genetic materials from two parents to create offspring with genetic variation.