An audit program for inventory includes the following procedure:“Test count a sample of physical inventory and agree to management’s count records.”"Observe the arrangements of the client's management before the inventory count."&nbsp;"Select goods received notes for a few days before the count date and confirm that they are recorded and existed as "goods in" in inventory records. The corresponding goods should be included in the purchase in trade payables.""Obtain written representations concerning the completeness and accuracy of the physical count and valuation."Which of the above procedure is not included at the time of attending the physical stock take.<br /> A. a. 2 <br />B. b. 4 <br />C. c. 3 <br />D. d. 1

The auditors will usually trace the details of the test counts made during the observation of the physical inventory taking to a final inventory schedule. This audit procedure is undertaken to provide evidence that items physically present and observed by the auditors at the time of the physical inventory count are:Select one:a.owned by the clientb.not obsoletec.physically present at the time of the preparation of the final inventory schedule.d.included in the final inventory schedule

If inventory is material to the financial statements, the auditor must obtain sufficient, appropriate audit evidence regarding the existence and condition of inventory by attending the physical inventory counting, unless impracticable.In which of the following situations would it be considered impracticable for an auditor to attend physical inventory counting?When there is insufficient audit time availableWhen inventory is held at a remote location far distant from the auditor’s premisesWhen the financial cost of attending the count would exceed the benefit<br /> A. a. none of these <br />B. b. 2 only <br />C. c. 1, 2 and 3 <br />D. d. 1 and 3 

In a manufacturing company, which one of the following audit procedures would give the least assurance of the valuation of inventory at the audit date?Select one:a.Testing the computation of standard overhead ratesb.Examining paid vendors' invoices.c.Reviewing direct labor rates.d.Obtaining confirmation of inventories pledged under loan agreements

In auditing inventories, a major objective relates to the existence assertion.  Of the following audit procedures relating to inventories, which does not support the existence assertion?Select one:a.The auditor observes the client's inventory and performs test counts as appropriate.b.The auditor performs a lower of cost or market test for major categories of inventory.c.The auditor reviews the client's inventory-taking instructions for such matters as proper arrangement of goods, separation of consigned goods, and limits on movements of goods during inventory.d.The auditor confirms inventories not on the premises.

An inventory turnover analysis is useful to the auditor because it may detect:Select one:a.the optimum automatic reorder points.b.methods of avoiding cyclical holding cost.c.inadequacies in inventory pricing.d.the existence of obsolete merchandise.