AUDIT - SESI 2

Here are the types of potential misstatement in inventory, except

• Fictitious inventory

• Improper valuation

• Write off

To make sure that everybody in the business following the policies and procedures, auditor should perform:

• Test of Control

• Substantive Test

• Stock Opname

The following is NOT one of the Purchasing Process Keys Steps:

• Purchase Order

• Good Receipt

• Delivery Order

Refer to our topic today, what tick mark should we use to inform that we have performed mathematical accuracy procedure?

• Footing

• Vouching

• Tracing

Here is the technique to perform stock take, except

• From inventory list to items

• From items to inventory list

• From items to income statement

In terms of control over inventory movement, the question related to write off damage inventory, is.

• Who Approved write off

• Who damaged the inventory

• How the inventory damaged

Goods in transit occur due to purchasing inventory with:

• FOB Shipping Point

• FOB Destination

• Periodic System

If Auditors perform stock take 5 days before EOFY, what should they do, in term of timing?

• Roll forward

• Roll backward

• Stock take slowly

Transferring physical inventory from one warehouse to another while the audit process is ongoing, aimed at covering up potential physical inventory shortages, may result in:

• Double counting

• Not owned by client

• Incomplete records

What document should auditor vouch to ensure that the value of inventory has properly counted?

• Purchase Invoice

• Sales Invoice

• Stock Cards