Question 1
The test of details of balance procedure which requires the auditor to perform tests of lower of cost or market, selling price, and obsolescence is an attempt to satisfy the objective of
◦ existence.
◦ completeness.
◦ accuracy.
◦ realizable value.
Question 2
Which of the following is an accurate statement regarding the audit of pricing and compilation of inventory?
◦ Inventory compilation tests include all of the tests of the client's unit prices to determine whether they are correct.
◦ The review for obsolete inventory should be performed by the accounting department.
◦ The most important internal control for accurate unit costs is external verification by an outside consultant.
◦ Inventory compilation internal controls are needed to ensure that the physical counts are correctly summarized and priced.
Inventory of the Universe
A software inventory log.
Example of an Explanation of Benefits statement.
A typical bank statement.
Example of Reconciling a Bank Statement
Styles of Coping and Examples from the Brief COPE Inventory