Solution-Describe the audit procedures you would perform

Describe the audit procedures you would perform

Assignment Help Accounting Basics

Reference no: EM132652657

Question - You are the auditor in charge of Spare Parts Ltd, a wholesaler in motor spare parts. The company operates its business from one large store in Bloemfontein.

The company's inventory consists of a variety of spare parts, ranging from nuts and bolts to motor vehicle engines. All inventories are the property of the entity and are purchased from its holding company (Producers Limited) which acts as manufacturer. The inventory records are fully computerised and a continuous inventory system is in use. The company has no internal audit function, although management does from time to time perform certain tests on the inventory.

During the planning meeting for the forthcoming audit the manager informs you that the annual inventory count will take place on 31 July 2020. The company's year-end is 30 September 2014.

The company's policy is to order inventory in such a manner that there is no inventory in transit during inventory counts, or at year-end.

Describe with motivation the direction in which you will audit inventory.

Describe the audit procedures you would perform to verify inventory account balance?

Reference no: EM132652657

Questions Cloud

What is the amount of goodwill resulting from the business : Neal Co. issued 100,000 shares of its $10 par value common stock in exchange for all of Frey, What is the amount of goodwill resulting from the business

Cluster of objects from binary transaction data set : Consider the mean of a cluster of objects from a binary transaction data set. What are the minimum and maximum values of the components of the mean?

At what amount should Planar record the acquisition : No goodwill or bargain purchase was involved in the acquisition. At what amount should Planar record the acquisition of Sistrock's net assets

Identify the weaknesses in the wage system : Identify the weaknesses in the wage system described above and recommend improvements for each weakness identified

Describe the audit procedures you would perform : The company operates its business from one large store in Bloemfontein. Describe the audit procedures you would perform to verify inventory account balance

How much is zakat paid and the method to compute zakat : You have to make a comparative analysis between two set of islamic bank financial statements. How much is zakat paid and the method to compute zakat

Significant impact on digital forensics : Describe the plain view doctrine, and why it has such a significant impact on digital forensics?

What should be recorded in Pendragon APIC : Pendragon Co. issues 200000 shares of $5 par value common stock to acquire Squire Co. What should be recorded in Pendragon APIC

Paradigms shifts in information technology history : According to Crocker and Smallwood, cloud computing represents one of the most significant paradigms shifts in information technology (IT) history

User Account

All Pages

Describe the audit procedures you would perform

Reference no: EM132652657

Reference no: EM132652657

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT