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    Tests For Rights and Obligations

    Uploaded by

    Wawex Davis
    - The auditor is concerned about testing consigned inventory in or out. - Tests for presentation and disclosure examine the financial statements. - Various audit tests are interrelated, including tests of the acquisition and payments cycle, payroll and personnel cycle, cost accounting, physical inventory observation, and sales and collection cycle.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Tests For Rights and Obligations

    Uploaded by

    Wawex Davis
    14 views3 pages
    - The auditor is concerned about testing consigned inventory in or out. - Tests for presentation and disclosure examine the financial statements. - Various audit tests are interrelated, including tests of the acquisition and payments cycle, payroll and personnel cycle, cost accounting, physical inventory observation, and sales and collection cycle.

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    Tests for Rights and Obligations

    Original Title

    Tests for Rights and Obligations

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    - The auditor is concerned about testing consigned inventory in or out. - Tests for presentation and disclosure examine the financial statements. - Various audit tests are interrelated, including tests of the acquisition and payments cycle, payroll and personnel cycle, cost accounting, physical inventory observation, and sales and collection cycle.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    14 views3 pages

    Tests For Rights and Obligations

    Uploaded by

    Wawex Davis
    - The auditor is concerned about testing consigned inventory in or out. - Tests for presentation and disclosure examine the financial statements. - Various audit tests are interrelated, including tests of the acquisition and payments cycle, payroll and personnel cycle, cost accounting, physical inventory observation, and sales and collection cycle.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 3

    Tests for Rights and Obligations

    • The auditor is concerned about what type of


    inventory?

    • What type of test?


    • Consigned –in:

    • Consigned –out: Inventory 1


    Tests for Presentation and Disclosure
    • What document should be examined here?
    • The financial statements

    Inventory 2
    Interrelationship of Various Audit Tests

    Tests of acquisition and Tests of payroll and


    payments cycle personnel cycle
    Work in process
    Raw materials

    Beginning inventory
    Beginning inventory
    +
    +
    Acquisitions of raw
    Direct labour
    materials
    +
    -
    Raw material used
    Ending inventory
    +
    =
    Indirect labour and
    Raw material used
    other manufacturing
    overhead
    -
    Ending inventory
    =
    Tests of cost accounting: Cost of goods Finished goods
    Perpetual inventory manufactured
    records
    Unit cost records

    Beginning inventory
    +
    Cost of goods
    manufactured
    Tests of physical -
    inventory observation Ending inventory
    =
    Compilation and Cost of goods sold
    pricing

    Tests of sales and


    collection cycle

    Inventory 3

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