If the auditor's test counts do not match with the test counts performed by the employees,...

If the auditor's test counts do not match with the test counts performed by the employees, what are some reasons as to why this may have occurred? What are some additional steps that may be required by the auditor?

Expert Solution

In case, the auditor's test counts do not match with the test counts performed by the employees, it means that the inventory has been under process in the operation which are required to be counted by the auditor to match with that of employee's count.

The reasons could be 1) The production or operation department has called up inventory which has not finalised and in process. 2) The finished goods are in process of delivery to customer and while counting was done, the goods has not reach-out to delivery point. So, the employee has counted these under Inventory.

As an additional steps, the auditor has to add following in the inventory counted at the Store to reach out to employee's counted figure:

a) The auditor has to count all the inventory under process in operation.

b) To include the finished goods which are under delivery process to client and has not reach-out to delivery point.

===============

ekkarill92 answered 1 year ago

Do you think employers should have to match employees FICA taxes? Do you think employers should...

Do you think employers should have to match employees FICA taxes? Do you think employers should be responsible for paying unemployment taxes on its employees? In order to receive your full points, your discussion should be thorough and you must reply to another student's discussion. Make sure that you state the classmate's name to whom you are replying. Also, this should be a thorough discussion. Typically one sentence is not a discussion.

Match the type of interval or test you would perform for the given scenario. Do more...

Match the type of interval or test you would perform for the given scenario. Do more people attend art museums on rainy days than on sunny days? Attendance numbers at the city museum of art were examined for 100 rainy days and 300 sunny days. Are hokey players getting taller? The average height of hockey players has been 68.3 inches. A random sample of 14 hockey players gave a mean height of 69.1 inches with a standard deviation of 0.9...

Match each of the following transactions to the journal in which it would be entered. Performed...

Match each of the following transactions to the journal in which it would be entered. Performed advising services on account Borrowed money for expansion project Received payment from customer on account Purchased office supplies on account Withdrew cash for personal use (by owner) Paid monthly rent Paid creditor on account Recorded adjusting journal entry for accrued interest

what are the auditor's objective when is comes to valuing inventory? What are the test thy...

what are the auditor's objective when is comes to valuing inventory? What are the test thy should perform to accomplish these objectives?

The auditor’s responsibility - How is the auditor's responsibilities addressed in the auditors report? - Do...

The auditor’s responsibility - How is the auditor's responsibilities addressed in the auditors report? - Do you think that the elements of the report adequately address the rights and responsibilities of the auditors and the stakeholders using the report, or is there any suggestion for improvement which you would make to the IFASB?

You are doing a chi-square test with a 5 by 9 table of counts (that is,...

You are doing a chi-square test with a 5 by 9 table of counts (that is, 5 rows and 9 columns). What is the degrees of freedom? Suppose you get ?^2 = 45.23. Calculate the p-value. Suppose that you want to see if there is association between income level (high/medium/low) and gender. a)Write the null hypothesis. b)Use StatCrunch to calculate the test statistic (that is, the x?2 value) and the p-value for this contingency table, which shows the income level...

"The auditor's conclusions are based on samples." Do you think that the use of samples increases...

"The auditor's conclusions are based on samples." Do you think that the use of samples increases the risks of the auditor arriving at an incorrect conclusion?

Match the cell type to the function performed. Nephron epithelial cell. Group of answer choices provides...

Match the cell type to the function performed. Nephron epithelial cell. Group of answer choices provides structural support for filtration transport solutes into ISF contain blood in vessels creates electrical impulses

1. Explain why bleeding time test are not performed as frequently as PT and PTT test....

1. Explain why bleeding time test are not performed as frequently as PT and PTT test. 2. Describe other test of platelet function. 3. List the requirements for coagulations specimen collection and potential sources of error for the various tests.

A torsion test is performed on an aluminum probe, with the following results given in the...

A torsion test is performed on an aluminum probe, with the following results given in the following table: (degress(º)) 0 5 10 15 20 25 30 35 40 45 50 55 60 80 T kgf.m 0 5 11 14 14.5 14.7 16.3 16.4 16.5 16.6 16.7 16.4 16.5 16 The probe dimensions are as follows: Length(L) Diameter(D) 180 10 Through your graph of behavior of shear to torsion against angular deformation determine the following: • Limit proportional to the cut...

Question