Which of the Following Items in Not Typically Documented in an Audit

question 61

Multiple Choice

Which of the following items in not typically documented in an audit planning memo?

• A) audit engagement objectives and deliverables
• B) the auditors' understanding of ICFR and IT systems
• C) planned use of the work of others during the audit
• D) results of the quarterly review process

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Definitions:

Ending Work In Process

The value of partially completed goods at the end of an accounting period, in production but not yet finished.

FIFO Method

An inventory valuation method that assumes the items purchased or produced first are sold first, thus the remaining inventory consists of items acquired most recently.

Beginning Work In Process

The inventory of partially completed goods at the start of an accounting period.

Inventory Formula

The equation used to calculate the value of a company's inventory, commonly stated as Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory.