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 

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

Which statement is incorrect regarding Inspection as an audit procedure?Select one:a.Inspection consists of examining records or documents or physical examination of assets.b.Inspection of individual inventory items ordinarily accompanies the observation of inventory counting.c.Inspection of tangible assets may provide reliable audit evidence with respect to their existence and about the entity's rights and obligations on the assets.d.Some documents represent direct audit evidence of the existence of an asset.Clear my choice

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.

What should the auditor do if unable to observe the beginning inventory?Option     Focus solely on the balance sheet in the audit report     Express a disclaimer of opinion on certain financial statements     Express an unqualified opinion on the financial statements     Request additional information from management