AA ACCA 15 June 2023

Continuous counting helps avoid the potential disruption of an annual count at the year end of the reporting period.

• True

• False

Why does the auditor need to attend the physical count?

• Inspect Inventory Quality and Condition

• • observe the performance of the procedures

• • perform test counts

• All of the choice

It is important to do a physical count because discrepancies can help point to ________ ?

• Control Problem

• Extra Stock

• Fraud

1.Purchases must be shown in the right period.
2.Sales and purchases cut-offs have effect on inventory.

(a)  

• Both are Correct
• both are incorrect
• statement 1 is incorrect
• statement 2 is incorrect

Research costs should be shown as an intangible asset

• False

• True

If sales are shown in the wrong period - what else is probably wrong?

• Cost of Sales

• Receivables

• Payables

Checking a sample of balances from the listing of payables to supplier statements is a test for?

• • Existence

• • Completeness

Which of the following is most likely to improve the response rate of the receivables confirmation letter?

• • Break down the balance into a list of invoices for the client to check

• • Use only large customers

Net assets of any business acquired should be measured at what value?

• Fair Value

• Book Value

Procedures for cut-off of receivables include ensuring sales invoices and credit notes around the year end are shown in the correct year.

• true

• false