Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
8 Cards in this Set
- Front
- Back
Substantive Testing of Inventory (CAVE CROC)
Completeness |
tested by calculating & comparing ratios for current period & prior periods, industry norms, verical analysis, nonfinanical info (sales volume in boxes or pounds)
|
|
Substantive Testing of Inventory (CAVE CROC)
Accuracy |
tested in part by comparing balance directly from general ledger with balance that is presented on fs
|
|
Substantive Testing of Inventory (CAVE CROC)
Valuation & allocation |
tested by comparing recorded cost with current replacement cost of goods; calculating turnover ratio; costing manufactured goods for inclusion of direct materials; labor & allocation of overhead
|
|
Substantive Testing of Inventory (CAVE CROC)
Existence |
tested by observation of inventories and test counts
|
|
Substantive Testing of Inventory (CAVE CROC)
Cutoff |
tested by examining recording of transactions for sales and purchases just before and after year end
|
|
Substantive Testing of Inventory (CAVE CROC)
Rights & Obligations |
tested by vouching sample of recorded inventory items to payment records, considering industry or client practices or consigned goods
|
|
Substantive Testing of Inventory (CAVE CROC)
Occurrence |
vouching of sample of recorded purchases and cost of sales transactions back to supporting documentation
|
|
Substantive Testing of Inventory (CAVE CROC)
Classification & understandability |
tested by reading fs to determine accounts are properly reflected and notes adequately informative; inquireing of mgt about consigned goods, major purchase commitments, pledging of inventory & other significant transactions or events
|