chap 21
Authored by Diễm Đỗ
English
12th Grade
Used 9+ times
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40 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which one of the following substantive analytical procedures would be most useful in alerting the auditor to the possibility of obsolete inventory?
Compare gross margin percentage with that of previous years.
Compare unit costs of inventory with previous years.
Compare inventory turnover ratio with previous years.
Compare current year manufacturing costs with previous years.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
One of the auditor's primary concerns in verifying the transfer of inventory from one location to another is that
recorded transfers exist.
all actual transfers are recorded.
the quantity, date, and description of all recorded transfers are accurate.
all of the above
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is an accurate statement regarding perpetual inventory master files?
When perpetual inventory master files are accurate, auditors can test the physical inventory after the balance sheet date.
It is a difficult procedure for the auditor to test the accuracy of the perpetual inventory master files.
Auditors test the perpetual records for reductions in finished goods for sale as part of the sales and collection cycle.
All of the above are accurate statements.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The auditor is concerned with four aspects of cost accounting, including
documents and records for transferring inventory.
perpetual inventory master files.
unit cost records.
all of the above.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When auditors observe the client counting inventory, they should be careful to do all of the following except
inquire about items that are likely to be obsolete or damaged.
calculate the unit cost of the inventory items.
discuss with management the reasons for excluding any material items.
observe the counting of the most significant items.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The audit of cost accounting begins with the internal transfer of assets from raw materials to work-in-process to
manufacturing overhead.
finished goods inventory.
the perpetual inventory master files.
retail sales.
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In most manufacturing companies, the inventory and warehousing cycle begins with the
receipt of a customer's order.
completion of production of a customer's order.
initiation of production of a customer's order.
acquisition of raw materials for production.
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