While observing a client’s annual physical inventory, an auditor conducted test counts for certain test counts were higher than the recorded quantities in the client’s perpetual records. This situation could be the result of the client’s failure to record –

Related MCQs

• The inventory consists of about one per cent of all assets. The client has imposed restriction on auditor to prohibit observation of stock take. The auditor cannot apply alternate audit procedures.
• While vouching, how will the auditor ensure himself that all credit sales transactions have been recorded by the entity?
• While verifying intangible assets, an auditor would recomputed amortization charges and determines whether amortization period is reasonable. The auditor tries to establish ….by doing it
• To test whether sales have been recorded, the auditor should draw a sample from a file of
• An internal auditor discovered that fictitious purchases have been recorded by the purchase clerk. This indicates absence of which control?
• For vouching of which item, the auditor is most likely to examine cost records?
• The term of the auditor ship of first auditor would be from the date of appointment till__
• The auditor has to enquire, under section 227 (IA) into different aspects, related to shares allotted for cash for the purpose of auditor include
• The scope of the audit including reference to the pronouncements of the ICAI, which the auditor adheres to, generally is communicated to the client in the ____ i) auditor’s report ii) engagement letter iii) representation letter
• As per the ‘Statement on Qualification in Auditor’s Report’s issued by the ICAI, the auditor, Under section 227(3) has to gave a statement of fact on_