Audit Procedures to Test Controls Over Inventory Records Could Include

question 20

Short Answer

Audit procedures to test controls over inventory records could include the procedures listed below. Match each of the procedures numbered 1 through 5 to the appropriate control objective (A through F) and place the identifying letter in the space provided.
A: Validity
B: Completeness
C: Authorization
D: Accuracy
E: Classification
F: Proper period
____ 1. Account for the integrity of the numerical sequence of shipping documents used to relieve stock from the inventory records.
____ 2. Examine material requisitions for evidence of approval by the production supervisor.
____ 3. Review the reconciliation of the daily summary of goods shipped per shipping bills to the daily summary of stock removed from inventory per the perpetual inventory records.
____ 4. Trace quantities shipped per shipping bills to the perpetual inventory records.
____ 5. Review material requisitions for evidence of internal verification of general ledger account numbers.

Explore the concept of deindividuation in crowd behavior and its effect on individual actions.

Acknowledge the strategies used in bargaining and their underlying psychological principles.

Analyze the importance of task complexity in performance in the presence of others.

Understand the concepts of fixed, variable, and total costs.

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash or goods, used by a company to fund its operations and facilitate its growth.

Double Taxation

The imposition of tax by two or more jurisdictions on the same declared income, asset, or financial transaction.

S Corporation

A type of corporation in the United States that elects to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code, allowing profits to be passed directly to shareholders and avoid double taxation.

Promoters

Individuals or entities that take the initiative in founding and organizing a business or corporation, often responsible for its early management and securing of initial capital.