- 20 Marks
AA – May 2017 – L2 – SA – Q4 – Inventory Accounting (IAS 2)
Examination of the importance of inventory and audit procedures for closing and work-in-progress inventory.
Question
For many businesses, inventory is one of the areas requiring most attention from the auditor.
You are required to:
- (a) State FIVE reasons supportive of the importance of closing inventory to an Auditor. (5 Marks)
- (b) Prepare a list of FIVE audit procedures relevant to ascertaining the cost of work-in-progress and finished goods. (5 Marks)
- (c) State FIVE reasons why a physical count of inventory is important. (5 Marks)
- (d) List FIVE reasons why the Auditor must be present at physical inventory count. (5 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Audit Procedures, Finished Goods, Inventory, Physical Count, Work in Progress
- Level: Level 2
- Topic: Inventory Accounting (IAS 2)
- Series: MAY 2017
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