ISA 501 – NBC Institute

AA – Dec 2022 – L2 – Q3c – Audit and Assurance Evidence

Discusses the reasons for conducting a physical inventory count and outlines the responsibilities of management and auditors with respect to physical inventory counts

Question

ISA 501: Audit Evidence – Additional considerations for specific items requires that, if inventory is material to the financial statements, the auditor should obtain sufficient appropriate audit evidence by, among others, being present at physical inventory counting unless impractical. The Managing Director of MLT Ltd is at a loss as to why in this age of technological advancement, auditors insist on being present during physical inventory count.

Required:
i) Explain FOUR (4) reasons for conducting physical inventory counts.
ii) Discuss the responsibilities of Management and Auditors with respect to physical inventory counts.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Auditor Responsibilities, Inventory Management, ISA 501, Management responsibilities, Physical Inventory Count
Level: Level 2

Topic: Audit and Assurance Evidence
Series: DEC 2022

AA – May 2020 – L2 – Q2b – Types of Audit and Assurance Engagements

Describe audit procedures to obtain sufficient evidence regarding inventory.

Question

ISA 501 – Audit Evidence – Specific Considerations for Selected Items deals with three specific items that may be contained within a set of general-purpose financial statements and for which the auditor may need to obtain sufficient appropriate audit evidence. It deals with specific considerations for inventory, litigation and claims, and segment information.

Required:
i) What should an auditor do to obtain sufficient appropriate audit evidence regarding the existence and condition of inventory where inventory is material to the financial statements? (2 marks)

ii) What should an auditor do when physical inventory counting is conducted on a date other than the date of the financial statements? (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Procedures, Inventory, ISA 501, Physical Counting
Level: Level 3

Topic: Types of Audit and Assurance Engagements
Series: MAY 2020

AA – Dec 2022 – L2 – Q3c – Audit and Assurance Evidence

Discusses the reasons for conducting a physical inventory count and outlines the responsibilities of management and auditors with respect to physical inventory counts

Question

Required:
i) Explain FOUR (4) reasons for conducting physical inventory counts.
ii) Discuss the responsibilities of Management and Auditors with respect to physical inventory counts.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Auditor Responsibilities, Inventory Management, ISA 501, Management responsibilities, Physical Inventory Count
Level: Level 2

Topic: Audit and Assurance Evidence
Series: DEC 2022

AA – May 2020 – L2 – Q2b – Types of Audit and Assurance Engagements

Describe audit procedures to obtain sufficient evidence regarding inventory.

Question

ii) What should an auditor do when physical inventory counting is conducted on a date other than the date of the financial statements? (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Procedures, Inventory, ISA 501, Physical Counting
Level: Level 3

Topic: Types of Audit and Assurance Engagements
Series: MAY 2020

Question Tag: ISA 501

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

AA – Dec 2022 – L2 – Q3c – Audit and Assurance Evidence

Discusses the reasons for conducting a physical inventory count and outlines the responsibilities of management and auditors with respect to physical inventory counts

AA – May 2020 – L2 – Q2b – Types of Audit and Assurance Engagements

Describe audit procedures to obtain sufficient evidence regarding inventory.

AA – Dec 2022 – L2 – Q3c – Audit and Assurance Evidence

Discusses the reasons for conducting a physical inventory count and outlines the responsibilities of management and auditors with respect to physical inventory counts

AA – May 2020 – L2 – Q2b – Types of Audit and Assurance Engagements

Describe audit procedures to obtain sufficient evidence regarding inventory.

Our offerings

Contact Info

Customer

Get In Touch

Question Tag: ISA 501

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

AA – Dec 2022 – L2 – Q3c – Audit and Assurance Evidence

Discusses the reasons for conducting a physical inventory count and outlines the responsibilities of management and auditors with respect to physical inventory counts

You're reporting an error for "AA – Dec 2022 – L2 – Q3c – Audit and Assurance Evidence"

AA – May 2020 – L2 – Q2b – Types of Audit and Assurance Engagements

Describe audit procedures to obtain sufficient evidence regarding inventory.

You're reporting an error for "AA – May 2020 – L2 – Q2b – Types of Audit and Assurance Engagements"

AA – Dec 2022 – L2 – Q3c – Audit and Assurance Evidence

Discusses the reasons for conducting a physical inventory count and outlines the responsibilities of management and auditors with respect to physical inventory counts

You're reporting an error for "AA – Dec 2022 – L2 – Q3c – Audit and Assurance Evidence"

AA – May 2020 – L2 – Q2b – Types of Audit and Assurance Engagements

Describe audit procedures to obtain sufficient evidence regarding inventory.

You're reporting an error for "AA – May 2020 – L2 – Q2b – Types of Audit and Assurance Engagements"

Our offerings

Contact Info

Customer

Get In Touch

admin