| 13-32. Select the most appropriate audit procedure from the list below. |
| An audit procedure may be selected once, more than once, or not at all. |
| Audit Procedure |
| 1. Examine currnt vendor price lists. |
| 2. Review drafts of the finqncial statements |
| 3. Select a sample of items during the physical inventory count and determine |
| that they have been included on count sheets. |
| 4. Select a sample of recorded items and examine supporting vendor invoices and contracts. |
| 5. Select a sample of recorded items on count sheets during the physical inventory count and determine tht items are on hand. |
| inventory count and determine tht items are on hand. |
| 6. Review loan agreements and minutes of board of directors; meetings. |
| Specific Assertion | Audit procedure |
| a. Ensure that the entitiy has legal title to inventory (rights and obligations) | 4. Select a sample of recorded items and examine supporting vendor invoices and contracts. |
| b. Ensure that rcorded inventory quantitie include all products on hand (completeness) | 5. Select a sample of recorded items on count sheets during the physical inventory count and determine tht items are on hand. |
| c. Verify that inventory has been reduced, when appropriate, to replacement cost or net realizable value (valuation) | 1. Examine current vendor price lists. |
| d. Verify that the cost of inventory has been properly determined (accuracy) | 1. Examine current vendor price lists. |
| e. Verify that the major categories of inventory and their bases of valuation are adequately reported in the financial statements (completeness and accurance and valuation for presentation and disclosures) | 2. Review drafts of the financial statements |
cybacatx
auditing_and_assurance_services_problem_13-32__hillmart.xls
