Assume That You Have Completed Your Procedures on the Audit

question 42

Essay

Assume that you have completed your procedures on the audit of Glick Corporation and have found the following audit issues.Indicate the account balance financial statement assertion that is likely to be most impacted by each of the issues,using the following key:
1.It appears that the selling price of certain of the company's products has declined significantly.
2.In performing a price test of inventory items,you found a number of items priced below cost.
3.It was discovered that a number of the items on hand and counted in the inventory were on consignment.
4.Inventory items were stored in three different warehouses and the auditors fear that some items might be in an undisclosed fourth warehouse.
5.During the physical inventory it was noted that a number of inventory items were damaged
6.Some inventory items owned by the company were in transit during the physical inventory.

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Definitions:

Drawsheet

A small bedsheet placed crosswise over the middle of the bottom sheet on a bed to assist in moving a patient or to protect the bed linens.

Full Body Sling

A device used in patient handling to support and lift someone with limited mobility, covering most of the body for a secure transfer.

Overhead Trapeze

A bar positioned above a hospital bed to assist patients in moving or adjusting their position.

Diabetes Mellitus

A metabolic disease characterized by high blood sugar levels over a prolonged period, due to insulin production issues or action.