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Problem 1: Kagan Enterprises is a manufacturer of specialized diving gear. What internal control could be tested by its auditor to support the objective of proper period cutoff for their Cost of Goods Sold accounts?
Multiple Choice
Option 1: An inventory count is performed each quarter.
Option 2: The operations manager reviews the inventory listing for any outdated gear or slow-moving inventory.
Option 3: The warehouse manager prepares a detailed shipping document for all inventory items that leave the warehouse.
Option 4: The controller performs a detailed analysis of raw material inventory, work-in-process, and finished goods inventory to detect any unexpected variance.
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Determine the cost of the land for Borges Inc. Borges Inc. recently purchased land to use for the construction of its new manufacturing facility
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