Page 44 - eBook Audit Of Financial Statement Components

14. The inventory and warehousing cycle audit objectives includes

physically observing inventory.
A True
B False

15. Auditors should not be concerned about the reasonableness of the
allocation of manufacturing overhead costs to work-in-process.
A True
B False

16. Auditors should not be concerned about the reasonableness of the
allocation of manufacturing overhead costs to work-in-process.
A True
B False

17. Non- financial information such as capacity of storage facilities is
valuable information during the audit of the inventory and
warehousing cycle.
A True
B False

18. The counting of insignificant inventory items should be observed
by auditors.
A True
B False

19. Auditors should perform inventory valuation tests.
A True
B False

20. The inventory and warehousing cycle audit tests are integrated
within the other business cycle test.
A True
B False

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