A continuously updated record of inventory items purchased, used, sold and one hand for raw materials and finished goods inventory
What is a (Perpetual) Inventory Master File
A letter, addressed to a recipient, requesting a response only if the recipient disagrees with the amount of the stated account balance
What is a Negative Confirmation
Auditors are required by auditing standards to do this in order to determine whether recorded inventory actually exists at the balance sheet data and is correctly counted by the client.
What is Physically Observe Inventory Count
When auditors compare gross margin or inventory turnover at the balance sheet date with previous years, they are performing what type of audit procedures
What are Substantive Analytical Procedures of Inventory
Procedures performed when auditors verify that perpetual record quantities (RM and FG) are accurately compiled they are performing what kind of test
What is Inventory Price Testing
In performing inventory price testing, auditors are meeting which audit objective when they consider whether inventory is recorded at net realizable value (e.g. the lower of cost or market).
What is Valuation