Problem regarding audit procedure

Assignment Help Accounting Basics

Reference no: EM13154300

An auditor observes inventory held by the client and notes that some of the inventory appears to be very old but still in reasonable condition for sale. Which of the following conclusions is justified by the audit procedure?

I. The older inventory is obsolete
II. The inventory is owned by the company
III. Inventory may need to be reduced to current market value

a. I only

b. II only

c. I and III only

d. III only

Reference no: EM13154300

Questions Cloud

Dividend should be distributed as : In the company's first year of operation, no dividends were paid. During the second year, Ten Sports paid cash dividends of $50,000. This dividend should be distributed as follows:

What is the ph : What is the pH at the point during a titration when 34 mL of 0.200 M HCl has been added to 33 mL of 0.0500 M NH3 solution? HCl is strong acid, Kb = 1.8 × 10-5 for NH3.

Create a forecast for the number of building permits : Assuming Tt = 761 + 5t that a multiplicative model can be used to describe the building permit data, generate a forecast for the number of building permits that you expect will be granted in June of 2006.

Calculate the concentrations of all species in this solution : A solution is prepared by adding 60.0 mL of 0.060 M HBr to 180.0 mL of 0.70 M HI. Calculate the concentrations of all species in this solution. HBr and HI are both considered strong acids

Problem regarding audit procedure : An auditor observes inventory held by the client and notes that some of the inventory appears to be very old but still in reasonable condition for sale. Which of the following conclusions is justified by the audit procedure?

What amount of interest income : Granger entered into an installment sales contract which required annual payments of $150,000, including interest at 10%, over five years. The first payment was due on December 31, 2007. What amount of interest income should be included in Wagner'..

Estimate the yield to maturity on this bond : A 5-year corporate bond with a 6.8% coupon rate is trading at $952.63. Assuming semi-annual coupon payments: (i) estimate the yield to maturity on this bond

What do we mean by the terms of trade : What do we mean by the terms of trade and how have changes in the terms of trade, in the long term, affected farm incomes in Australia?

Assisting the county assessor : Suppose you are assisting the county assessor (whose job is to assess the value of properties for property tax purposes) in determining a model where the price of a single-family residential property in a given neighborhood can be predicted based on ..

User Account

All Pages