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:

NAACP-sponsored Bill

Legislation backed by the National Association for the Advancement of Colored People, aimed at securing civil rights and eliminating racial discrimination and prejudice.

Lynching

The illegal execution of an individual by a mob, often by hanging, without legal trial, historically used as a method of terrorizing Black communities in the United States.

Senatorial Filibuster

A tactic used by senators in the United States Senate to delay or block legislative action by speaking for an extended period or by other procedural means.

Ossian H. Sweet

An African-American physician whose involvement in a self-defense case against a white mob attacking his home in Detroit became a significant civil rights landmark in the 1920s.