Inventory Audit Lecture Notes

I'm not useful Jen it's an audit of inventories so at least it's a good at least it's a German so say penny and becomes a big problem channel it's again secure the inventory so in some cases Allah put up to three problems inventories big McGee examiner's auditing huh make sure the Pelican more material on or the top inventories warm up okay so problem number one Jana classic problems in the orbital inventories so personally gone classic typical structure nakita mo section okay it's a problem when demand even more than paid to thanks and apk exactly so he demon exactly the same pareo my structured a similar a parable toy among are paying Hadid al-amin when an attempt and Obama or baguette I'm on compute adjusted balances there okay they say basically some ominous external reset examinations in emphasized a little delay of procedures paying service economy about no time of computer adjusted balance dynamic palette I'm a normal body so they live in a highly an examiner John Parliament or D by a dual monitor is a theory portion a so your questions 1 to 10 they saw pointers on in the audit Bob inventories by the way they get a of nothing first topic that Letta epigenome lecture notes on you know use of assertions in obtaining audit evidence so take note human assertions they on en am subject matter of the oldest okay it is Kashian in detail in auditing theory so you need to know mama assertions then okay then for each account the Somoza lecture notes not the indian some internal control measures and sample audit program so non general objective purpose your own procedures okay young discussion Yin will incorporate in the problems so again I am auditing problems indicia purely computational soap ratings I some problem Leeman questions predict the hottie of questions day one my poppin Pitka wedding up Atlantis made some theory a lot you dearly here mama substantive procedures pink the mana fiber some pointers in the audit of inventories so questions one to ten mana back with a lager compute them an adjusted balance system a question number one when inventory is material create the financial statements the auditory shall obtain sufficient appropriate audit evidence regarding existence so you know if a verifier existence and condition of inventory a how Papa nama be verified I'm a inventory medic axis so panel not in my verify condition an inventory some psychic John letter C by attendance at the physical inventory counting the fact that attempt is a physical count basically marquita data new inventory so in your best evidence that a exist your inventory and of course dialog attempt is a physical count medicator initengine condition now inventory and less of course attendance is impracticable okay also performing all the procedures up at the entities final inventory records to determine whether they accurately reflect Apple inventory count results co-op Amamiya okay Dom on my own town indeed imagine I'm not reflexive records so we need to make sure the comedy act well okay Mason County Linda pata naka record I don't eat I applaud uppity accession records okay so number one letters so to verify existence and condition of inventory and by the way ha mandatory procedure shadow so double it or Shelley a so shall obtain evidence regarding existence and conditioned by pace or required procedures an at-sea no unlock required an A and pinion like an addendum note a and B are a required tab a by a particular standard so annum standard Ian pay D retire PA and in a tire on a PFR SPS a lateral PS am so PSA 501 yen America Arjun so Philippines standard on auditing number 501 a note Italian all the evidence is specific considerations for selected and attempts at kazama's are selected item stay on it or inventory so general in the vaquita young requirements apartment or Dignan inventory at come poppin oh yeah apply your requirements then pain sorry Anna young Ben and get not is a number one your procedures don't mandatory requirement of PSA 501 a so kasama then there's a 501 your requirements kappahd motto or Dignam litigation and claims and segment information okay poppin about Yoda tanning beds and open department of engineer and gentlemen be at the end not provide pain and guidance tens of PS a 501 a thanks number two young attendants a physical count nyan and the Bulgakov engine so that's number two one second John Delta all of this and what are those up a letter a case procedures in the attendance at the physical inventory counting and letter a inspecting the inventory to ascertain its Anatomy porpoise Kanaka 10k verify existence and condition evaluate its condition and performing take data test on stamina so by the way had the pad clear satiny Toa young basically inventory counting in the trabajan an auditory Anna now external audit or and got the one on procedures Jan clients personnel a son guard Windham nothing as external or deport Mercosur Blanca region so we'll do this check and test counts Paragard Obatala Canyon plugin that's why it's a answer procedure data but coordinated with the Clarion Sousa planning states an audit so padena part was opinion waiting messages encoded or pontil anti-darwinian where ultimately they decide on the timing client a sagina clients personnel on guard whenever a so you letter B yeah their clients personal younger to meeting atomic the management's instructions so Baba kama contains a physical town make sure Merrigan copy no instructions they on it if you move instructions then panic at antennas account he observed Monaco complied management's instructions okay and the performance of procedures for reporting and controlling the results of the physical inventory count okay then letter C misimpression Pelton Anderson a manual per observe Brenda policy knows about you and data but a check not Empress incident layer and then obtaining all the evidence as to the reliability of management style procedures Hey so yeah Amana procedures involved in the attendance at the physical town number two then now young laughter a B and C they n okay Anna classic Positas playin so you need your next question okay number three so young a B and C a no classing procedure Shion so by the way naked man am nota there are three types of all the procedures according to the objective of doing the procedure and what are the three types of audit procedures at known risk assessment tests of controls okay substantive a so young three types of OD procedures okay so briefly young risk assessment an objective and of course assess the risk actually pensioner asleep every overall and your assertions level Hey so yeah nice anapanasati Orion so I know labels in assessing risk so again it on purpose Jana assess the risk so FS Leben and assertion Level II tournament tests of controls and a nominal portion yet another pest controls tester controls at an immediate decision whether controls are design and operating effectively so design buyer and operating effectively automaton tests of controls a autonomous substantive which is the focus of auditing problems Ngongotaha canina a non-partisan K detect and detect material misstatements okay they are dependents of an audit procedure pending mugging risk assessment predictors of controls peddling substantive it on universe' a B and C gerenian after doing risk assessment so if it's a VN delta post a risk assessment bae yong gagawin say a B and C and sahaja Delta asset a post a risk assessment journey so either tests of control stallion or substantive depending on the auditors risk assessment in a personal level of risk assessment so depending on the auditors assessment plan approach and the specific procedures carried out by acromion procedures noted in number two I design Parimal on mminton designed and operating effectively on controls tests of controls and corrosion purpose donkey novice and Umberto I Parramatta Tech Namba Tyrian misstatements classify data and ass substantive number three then pain okay now we possibly can it as a number one letter a attendance a physical count is required unless impracticable you need your next question in which of the following cases is attendance a physical inventory counting in practicable so son John a much a justify you his deepak attendant say mix opinion required bank attendee it's a physical count so an operating the Hillary Taylor I never gotten to see impractical Pollyanna so say good John later well inventory is held in a location that may pose threats to the safety of the audit or compromising safety are valid reason for not attending the basically you later be that's not a valid reason so like an madam noti'm letter be so very clear Jan appeal my standards okay the matter of deep very clear judge of PSA 501 the matter of difficulty time for post in both is not is not in itself a valid basis for the auditor to omit an audit procedure for which there is no alternative or to be satisfied with all the evidence that is less than perceive so in the predicate on Ellen happy young difficulty time for was innocent to meet that procedure a federal safety lamp abuse happened valid religion pain so you need a problem a pop and Onuaku Indian obtains a physical count to see impracticable so epic Sabine on Indiana cotton indeed ago value standard procedures of verified an existence in condition of inventory so Anton on an embargo winner auditorium in that case reenacted of the number five if attendance at physical inventory counting is not a impracticable so dynamic compromising see Tina auditor so I'm gonna win a multi turn okay standard procedure in fact attains a physical turn impracticable even so I'm gonna win an audit or later alternative Nala so in the podium standard advertiser alternative is a pendulum a given procedure parama buried by an existence and condition Canaan Gurkha when iam later be naked madam dot will be so the auditors will modify the opinion in letter a is that possible to do so home in demagogue Ohio alternative ok Andina satisfied alternative so it will result in multiplication of the opinion at another beginning opinion Chaminda possible a an onsen origin made up a drug during procedure Hindi nagawa Yin Yin Dana Cowin spoke limitation at the Palmeiro is scope limitation in the Napa paavada evidence a potential ok so the reading of a poem evidence and operating opinions on either qualified for disclaimer peso unum normal impeded people even a couple can lack of evidence and issue they young letters in a man can endure a visitor the camera not you'll see so in letter C if the auditor is unable to attend physical inventory don't in indeed answer impracticable but due to an unforeseen circumstances okay for example you know where host and on out of town so NACA schedule if I do not want another area in a pencil my book lamp above you unforeseen circumstance Asian some pending Irwin make or observe some physical turns on an alternative date nylon hey so in perform all the procedures fun intervening transactions so abacus iam case kappa impracticable italic Hindi maracas pintado serie became in an alternate ignominy demagogue Hawaiian modify the opinion from violence unforeseen circumstances am Tyler come on up dilemna alternative day games okay they postpone Mona's paper supply will postpone Yamaha contagion here okay poor Cindy Pentium D repeating do nothing a five-letter a at the main a question only alternative name so Papa no not in masses are being a total na may inventory indeterminate in a PITA of inventory so that's the question in number six a an alternative kapenga impracticable a to attend a day later a inspection of documentation of the subsequent sale of specific inventory items purchased pilot metoya before so prior to the physical inventory County so Tom American Kuna event a and subsequently I am attention - Toma my inventory say no if event approval animal inventory pero make sure de una Penta neon vanilla bean Alicia before the PC chemical Pasi convenient after ending a gay excision at the time of God I am a little letter B the city letter B Benelli up Terry Oh in the existing yen at the time of growth you say I'm concerned that injured whom the KX is pain inventory a at the time of supposed to be basically so I've been a captain toddle impracticable I check your sub sequences noventa Berto subsequently totora main mentoring where you've been a little before the physical count next number seven a pandemonium inventory down under the post to be in control of a third party that was a material known to the financial statements so papilledema be buried by kaneki excision so panama be verify of condition yet okay so the hip third party and make pasta didn't say inventory per diem later a not confirmed allah so he confirmed alums a third party anyway third party de manana or whether any later be so human that was the area that was fun inspect papaya but Somalian young a and be serviceable John letter C painting a only wedding be only or combination of a and B again as operating a love have a Dana reading Binghamton or combination and a envy so to verify existence and condition of inventory held by a third party case seven letter C number which of the following equation is snappa it's not it's not one of the independent auditors objectives regarding audit of inventories by the way huh okay in developing or deep objectives the auditor will consider the assertions Unimog assertion stand under the pitch one of the new material a summary and a Poisson ratio assertions and ultimate essential an entity is presented mainly a personal specific assertions of it is paid at the secondary lecture notes so in developing the audit objectives the auditor will consider those assertions payable in procedure lien if we pay a penny of assertion Kisame inserted a Towanda Oh deep objectives a solid see objectively on yes or no okay letter A verifying that inventory content is owned by the playa so I don't connect an ownership that is an audit objective related to us like an unknown rights okay so you letter a and it be verified in rights ownership letter B verifying that the client has used proper inventory pricing pricing effects valuation another objectivity in relation to valuation letter C asserting the physical quantities of inventory on hand okay so that's verifying what existence so they are you a B and C the our audit objectives verifying these assertions so Hindi kazama's objectives then verifying that all inventory all by the client is sadhana company on hand not necessarily the seabed in among own but not on hand so that partying palitana pain so the objective turn verifying that all inventory all by the client is included is included in inventory and that is in relation to what completeness so pretty old but not on an indicator not one hand a separating located in other areas but still owned by the company so again an offer is included not necessarily on that things are in death okay next number nine so by the way Hannity mamasan polar the Vedic structured equation either be began conduct procedure khatallah ginetto procedure it on top was committed on Saturn young related assertion or did begin sorry Tottenham the man what is the procedure reading and procedure most likely waiting lists lightly substantive procedures okay so number nine and auditor is most likely to expect loan agreements under which and entities inventories are highly Minato pledged in mid Nepal apparel and inventory as discussed in FA our Capitan inventory economic Napolitan and a requirement on the part NACA dissolution so require disclosure on financing arrangements so relieved at the end to what ascension I'm psychic John later see unconcerned at injured behind in a disclosed properly so presentation and disclosure that's the related assertion in next number ten I told a bit bit again procedure doesn't Ilocano an assertion yet so this one and all the toward selected items for tests counts while observing appliance physical inventory the auditor then trace the test turns to the clients inventory listing so I live in Arizona Saoirse not only the level ample people at virgin they it of existence and completeness Hey so which one existence or completeness mm-hmm completeness or existence and utterly genuinely made up upon busy place of our Amina per conversion so existence completeness a and so Parana comma confuse Donita madam technique you need to check the direction of the procedure that's our guy so I know you know what about it on certain situation John after you need of inventory and your clients physical inventory listing and a teen summary normally pregnant conduct not basic account Papa noble element pulanana biram measure near allegan attack survey Aparna talk epic Sabina counted say tempered okay so boom Ohio audit or non sample nonpartisan test counts and in a whine about it or did resna so properly of Direction K Kohanim Tesco in residence at least so Tracy you can omit the procedure so an objective giant Siddappa lahat Nam Nandita Solis may corresponding degrees at Lompoc stayin dependent on solace so an efficient memory Panama detour from Etobicoke items title represented beta tax or the discounts Inuyama Dulce lease Chapin Indiana potato dos Alistair pool analysts are so clearly anniversary verify existence or completeness complete nation come Yabba nii-sama don't solicitor say comedy nights are cooler yum items so complication so answer number 10 Bravo okay by the way your question the other given here in the October 2019 pizza so you need to decide people munis on poll normal questions Sauvignon young structure a big and kind of procedure and of essential for essential annum procedure okay population begin existence but they the next our team direction to Mohan and some poll to Salas tahun he nana p.m. corresponding tanks but nandan Solis tahun Valentin are invincible those items are not existing so they are at animal and agrarian about existence so Donovan bound Ching okay so a telethon about Ching and tracing the difference lies on the direction so I'm tracing from source to records normally use to verify completeness it on vouching from records to source okay so used to verify existence but clear hye-young direction as a pagina clear and direction vanilla coke again hadouken coming in and sat direction a the same d TOA Patna Carmelita sinem direction and a gamble Eden pay direction a family name procedure so fed up a theory of objective paraplegia direction I mean the classic leery of objective so indicating clearly own direction a submariner man might identify objective yo dapat much a cool and in the game direction you have some pointers Shanna some pointers in the audit of inventory so again I'm auditing problems indicia purely focused beta-catenin Matata certainly and also in auditing beauty castlemaine substantive procedures Idina in the last two or three exams but a me reveal questions on procedures paint a little piece of aluminum examiner Kumar would not come back od can see Papa mama diaphragm and adjusted to adjusted pillow panel a podium impedance and a pillar and procedure para back wanna evidences that but Cleveland's a disincentive ready Anna disappeared I took evinced a problem here ok so simply forgetting than the old it can add later on DARPA came up lame a procedures name okay Janet on a medium traditional Kappa problems now so an app engine adjusted balance in so notice this is audit of inventory pero Kazama co-ordinate engine related transactions in related transactions and the related accounts after an inventory personal revenue received but they should expenditure disbursement cycle to manufacturing company a part insulin production cycle some rhyming cycles in body yeah inventory so revenue receipt expenditure disbursement a production side okay so Gaga meet Munna Bhai heart I'll first problem I am NOT Anita audit approach Munna so parama - a very typical the audit approach so Gardo rato L&P accounts so prepare 5p accounts one for each requirement here highlight that in your adjusting entries came in son indica toponymy no adjusted amounts that are in the same entry so entry to adjust it up but my one of the time to move on now adjusting entries we sewed up a champ Ramona my young man and chance to attain Antioch on start from under Justin so this one given a dose of problem are you unadjusted okay so these are the requirements about what requirement the waka nante at all start from unadjusted solo game ammonia unadjusted a so you audit approach from and adjusting to what kind of adjusting entries post to get the adjusted balance okay now atonium background so you were engaged by the entity for the audit of its FS for the year ended December 31 2020 the company is engaged in hustling business and makes all sales take note of this we did this later a markup 25% so on basis cost we need that later so given young sales and purchases books ATM transactions a few days before year end so after you an adjusted balance of sales this one your closing entry amah purchases and adjusted so angel Nando starting Pia TransCanada also given an inventory accounts receivable accounts payable and adjusted balances given a now in relation to inventory you observe the onion required procedure you observe the piece achill inventory of the goods in the warehouses so Don Dona kalakeya my inventory so Kalin get away own physical come December 31 and were satisfied that it was properly taken sorry two thousand three thousand 800 basis and physical come okay in the clients warehouse on December 31 now okay so you know no problems oh did similar those are no problems not in danger FA our wedding began can an unadjusted tapas did became our findings together semana FA and the problems normally not a specified on whom item by eye luden or excluded now Saudi in some cases he began telling them findings in this has a billion Kuna include orna exclusive item K so k obtained purpose of antenna Tejada is standard assumptions so he summarized with an attempt at silent and problem so a main assertion rather unmade assumption okay only those items basically present inside the warehouse were included so if it's a bientot consolation problem young 600,000 a universal open warehouse byaku NASA lab Aston warehouse in Dina included so Union main assertion main assumption an implication of assumption then so Medina didn't know he again annum standard assumption inside the warehouse included outside the warehouse excluded therefore and Bob and a and a dinger there are certain items that are normally excluded barkat 'no exclude a similar survey house nasa lavas not inside the warehouse you can Oldham company on top again included so not in the warehouse excluding a Oldham client should be included in this situation what is the effect on inventory the put in include not exclude unknown affect me and say inventory inventory is under stated olivine decima and by the way her coca-cola mutiny toha and poor post them substantive procedures detect material misstatements at the insula sobbing misstatement stay and it can be under or open statement at all and their misstated an inventory you're not be so nothing but they take Kappa Gamma Govardhana substantive procedures so yeah and I'm gonna pop and they are so and they are normally night I'm stayin now exclude to say when I saw a house Farrow old up at including so number one John Cap'n in transit sempre transit by exclusion okay consider the transaction and the terms of shipment come young I a purchase transaction a OB shipping point while in transit all day and benefit in inclusion in transit pass thanks Lou okay Duncan f OB destination no problem conceives the Mannion k @m or be destination and sold buyer so he had a part in include payin entrance Cigna excluded them okay Lampoon shipping point Tessa soltner so come purchase welcome program from F will be destination from sale demand when a problem from a poor be shipping point so negative issue should be included yet but excluded can say entrancing a another item you out on consignment kasi Nandu own type ensign iam items well as a warehouse okay so what else in general well as a warehouse located in other places so pencil later and as I'm sure now exclusion okay again inside included outside excluded another problem there are certain items that are normally included kasi NASA logo plan awareness a hindi naman palace accompanied on should be excluded and then uh madam effect in so deeper inventories one overstated okay again it can be over it can be under so it'll open AMA effective okay and what are those items that happen in exclude a NASA warehouse tank lumen gentium held on consignment the entity is the consignment you NASA company included now general rule general rule and shipped and soon he's a general rule and ship and so careful not so warehouse by okay on my own included the same assumption and shipped and so they allow me my exceptions Jenny beta to let the mama me to order so once completed considered sold in and impassive warehouse so still included but already soon in general on goods already so unum do not answer warehouse for safe keeping porpoises for safekeeping porpoises salami Indaba in excluded in under the path nothing so yeah Amana Bob and Diana Tina kassig a porpoise nothing but it again young miss is statement there it can be under or over and by the way of course applicable demure assumptions kept silent and problem because it means Sunday problems has a beer in transit in include conceding an assumption a clickable only if the problem is silent okay yeah so using those assumptions I don't let me edit out this a physical town when I cannot any informations of problem okay aside from the physical count and the punky noir attendance at the physical curve and the punk in Havana so now conduct a nothing at all of the sales and purchases cut-off tests under the Manipur Poznan cut of test am so a Taliban on purpose Ian determine where they're the transactions were recorded in the correct accounting period and wedding but it takes a procedure naeun young 2020 transaction in a record than 21 okay animal DARPA 21 the recruitment 2020 so Ron cattle interpreting my detection P and as part of the sales and purchases cut of test connecting las documents news item last receiving report down the Nagar made at all 1063 refer to purchases K repair to purchases ok & eun-jung last down and a garment RR 1063 and based on purchases books and engine cooling the record another implication Yamaha are after that ended on a record so on the record Lofgren 63 also you noted that no shipments will happen shipments so no shipments had been made on any sales invoices whose number is larger than nine six in Roberto six Marin Dominic are a virgin now si number a higher than 960 yes at all three items okay and shipped unsold Pia peridot Hungarian very clear now a record as what seems so adjusting entry number one okay and shipped and soul erroneously recording as scenes so get the total so first adjusting entry debit sales cancel Natyam sales total hundred thirty thousand credit accounts receivable erroneously the a record as its will upon shipment a after each entry okay pause to the theater suppose to the affected t adults okay now that last away RoSPA inventory will happen on shipment no problem on inventory so properly included she'll say inventory okay next you also take the following additional information so later a included in the warehouse physical inventory at December 31 where goods which has been purchased and unity Cigna are our number ten sixteen okay but for which the invoice was not received until the following year so a little later a purchase transaction now received the double goods is a - account so no problem on inventory included share properly paronella t of employees so make possible problem chance epic record and purchases sorry prepare to purchases are are 1060 recorded so Tina Munim Anna record after 59 and on UNIX dampened an RR 61 so yet an advantage kappa Gandaki events sequentially numbered you can easily account for the completeness clearly hindi no record young 1060 okay I see after 59 1861 de so indeed a record young 16 happy so unrecorded purchases so adjusting entry hey David so debit purchases eighteen thousand credit accounts payable again Valon problema higher inventory included properly hindi lambda record young purchases supposed to the deer hunts' supposed to the affected theorems okay next so notice now after lien Bennigan's - Bennigan's at insa problem the post on banco de for the daughter anna toxin 800 deep findings parish am preparing a poem on Appendix A and India by doing audit procedures and observed them physical the grip unum purchases in siesta together paladin document their findings in narrative okay so they actually they do my advantage capybara venom or did experience cause if I come here of an audit experience having been a possible problem the big picture maker in situation okay so after Leah so us become an exam mirror cinnamon requirement in experience so the top a society in particular to eat more right well upon experience spread in a mock exam so certain part of a pattern exam Buddha second experience okay so say us animal experience Munna Bhai tokamak exa hey Sofia second inner you make some dinner this I'm gonna eat a teaspoon medical knowledge random papal practice okay so you need octal engine ago and my examiners my mom equations a develop and practice in problema in the pediment aquarium experience so your afternoon param proposals before II Dana pelegrin may experience monogamous exam Erin Ovalle Dina Toledo Madigan now whether they propose and then a survey ganito deeper so we have many Tomica that you haven't been a person beyond findings must back and adjourn Connecticut a my own situation but now don't isolate build a harbor been a possible but a monopoly talkin picture or bead Union actively / beyond epics appeal or named Indian mission pedo kovalyova happen Pina Bausch amo the detriment baby picture participation big lambda D deliver 19's a good of aspirin decor you excel in pictures no no baby do not be do tapas papi Sagamihara dance so hella may ever see an erotic parenting so narrative so hot on a date oriental again you later beer a saboteur on the evening of December 31 there were two trucks in the company sighting is if Indonesian so and upon situations in a savage insulator pou town made elegant rock significant warehouse a suddenly be civilian Kumail abandoned truck nyan Camilla mantra the NASA alabaster warehouse Ian hindi nia sharma sophistical town so a new example now located in other places located shine other places a barber Tina Tina Mannion kanthamma bana exclude a young trap number 1 2 3 and also vision in a load oil January 2 of the following year and receive on our Adam Burton 63 as noted earlier Tama Ito the record properly on Iranian so the receive nough nough record properly by allah and problema inundated unload January 2 inundated physical Khan December 31 they are on the date of countenance and a pass/fail a warehouse an Olympic Sabean hindi nice aluminum truck lion so excluded but should be included so adjusting entry okay debit inventory vision a Sammy refer to our our 1063 Nanda Yohan so David inventory 64,000 credit P&L Sunbury all cause of 660 portals so one problem hi on purchases properly in a record so head and then unload generally to hindi nia sharma you inventory so indeed is a masa inventory in demand entre okay under the man item 1 for 3 in 1 for 3 loaded until December 31 so Milligan a salut December 31 pero O'Malley's LOM sock company premises January 2 a big Savion and shipped and soon and shipped and sold by an invoice number than 16 refer to sales copy Technium sales now a record by of 9 6 8 know properly not recording so what if I am problem on sales Tamaran properly not recorded I'm problema that is silent and problem an assumption by the way couple Selita nemuri on physical town after office hours upon after office arstan Aryan Khanna illa bust na na Iligan Osetra babu panic on Ibiza bein at the time of count one aniseh warehouse in Dominion and then a syllabus now what happened excluding unsold peon should be included so adjusting entry same pay with track 1 2 3 so David inventory algorithm hundred thousand selling pressure dissipation invasion so he did abide that in the end on 1.25 so a marker 25 percent based on cost so they beat inventory hundred thousand selling price divided by one point when different credit P&L summary or also so original abandoned ixnay on the exclude paradata included while on problem sales even a record well our problems of purchases properly night record post the entries impose the angles okay so postman adenine da da da da so after each entry post market parody mccauley Mouton okay that fabric tight is a problem okay item later sinneth Ayanna temporarily stranded at December 31 at the railroad siding were to delivery trucks in route to a customer so Adam transaction Ito sales tuna stranded Ian at December 31 epic severe in transit so in transition okay terms of shipment I own it all be destination so transaction sales in transit and stranded K AB or B destination sales invoice number 966 Roberta seems the record by of 966 yes erroneously the cecum f OB destination and sold by and while in transit not very clear the record sure seems erroneously so adjusting entry David pay sales cancel nothing 150 thousand credit accounts receivable okay still in transit a a OB destination Italian transit now exclude Nancy inventory unsold Potter but including so another adjusting entry a debit inventory so hundred fifty thousand that's the selling price divided not enough 1.25 so 25 percent markup based on cost credit P&L summary or loss of six so what happened to that item the record erroneously a sales now exclude erroneously from inventory so themselves overstated that was inventory under single post entry okay thanks later did a Tyler and Ruth to the Clarion okay on December 31 so in transit and in transition was a truckload of goods received on our number 1064 so indeed an array accordion and will in the record 1063 terms all be destination at Amala purchase transaction in transit f OB destination properly not recorded okay and properly not included so letter d like a nun no no adjusting entry so it'll later dia like an annuity and no adjusting entry okay so properly not recorded properly not included so no adjustment needed so excluded properly properly not recorded now post entries get the adjusted balances get the adjust their balances Anagha you know typical audit approach and adjusted prepare adjusting entries pay then adjusted balances again the problem maeín per degaton amla entries predicated on linear procedures a chévre usually in italian adjusted amongst so check your postings answers

I&#39;m not useful Jen it&#39;s an audit of inventories so at least it&#39;s a good at least it&#39;s a German so say penny and becomes a big problem channel it&#39;s again secure the inventory so in some cases Allah put up to three problems inventories big McGee examiner&#39;s auditing huh make sure the Pelican more material on or the top inventories warm up okay so problem number one Jana classic problems in the orbital inventories so personally gone classic typical structure nakita mo section okay it&#39;s a problem when demand even more than paid to thanks and apk exactly so he demon exactly the same pareo my structured a similar a parable toy among are paying Hadid al-amin when an attempt and Obama or baguette I&#39;m on compute adjusted balances there okay they say basically some ominous external reset examinations in emphasized a little delay of procedures paying service economy about no time of computer adjusted balance dynamic palette I&#39;m a normal body so they live in a highly an examiner John Parliament or D by a dual monitor is a theory portion a so your questions 1 to 10 they saw pointers on in the audit Bob inventories by the way they get a of nothing first topic that Letta epigenome lecture notes on you know use of assertions in obtaining audit evidence so take note human assertions they on en am subject matter of the oldest okay it is Kashian in detail in auditing theory so you need to know mama assertions then okay then for each account the Somoza lecture notes not the indian some internal control measures and sample audit program so non general objective purpose your own procedures okay young discussion Yin will incorporate in the problems so again I am auditing problems indicia purely computational soap ratings I some problem Leeman questions predict the hottie of questions day one my poppin Pitka wedding up Atlantis made some theory a lot you dearly here mama substantive procedures pink the mana fiber some pointers in the audit of inventories so questions one to ten mana back with a lager compute them an adjusted balance system a question number one when inventory is material create the financial statements the auditory shall obtain sufficient appropriate audit evidence regarding existence so you know if a verifier existence and condition of inventory a how Papa nama be verified I&#39;m a inventory medic axis so panel not in my verify condition an inventory some psychic John letter C by attendance at the physical inventory counting the fact that attempt is a physical count basically marquita data new inventory so in your best evidence that a exist your inventory and of course dialog attempt is a physical count medicator initengine condition now inventory and less of course attendance is impracticable okay also performing all the procedures up at the entities final inventory records to determine whether they accurately reflect Apple inventory count results co-op Amamiya okay Dom on my own town indeed imagine I&#39;m not reflexive records so we need to make sure the comedy act well okay Mason County Linda pata naka record I don&#39;t eat I applaud uppity accession records okay so number one letters so to verify existence and condition of inventory and by the way ha mandatory procedure shadow so double it or Shelley a so shall obtain evidence regarding existence and conditioned by pace or required procedures an at-sea no unlock required an A and pinion like an addendum note a and B are a required tab a by a particular standard so annum standard Ian pay D retire PA and in a tire on a PFR SPS a lateral PS am so PSA 501 yen America Arjun so Philippines standard on auditing number 501 a note Italian all the evidence is specific considerations for selected and attempts at kazama&#39;s are selected item stay on it or inventory so general in the vaquita young requirements apartment or Dignan inventory at come poppin oh yeah apply your requirements then pain sorry Anna young Ben and get not is a number one your procedures don&#39;t mandatory requirement of PSA 501 a so kasama then there&#39;s a 501 your requirements kappahd motto or Dignam litigation and claims and segment information okay poppin about Yoda tanning beds and open department of engineer and gentlemen be at the end not provide pain and guidance tens of PS a 501 a thanks number two young attendants a physical count nyan and the Bulgakov engine so that&#39;s number two one second John Delta all of this and what are those up a letter a case procedures in the attendance at the physical inventory counting and letter a inspecting the inventory to ascertain its Anatomy porpoise Kanaka 10k verify existence and condition evaluate its condition and performing take data test on stamina so by the way had the pad clear satiny Toa young basically inventory counting in the trabajan an auditory Anna now external audit or and got the one on procedures Jan clients personnel a son guard Windham nothing as external or deport Mercosur Blanca region so we&#39;ll do this check and test counts Paragard Obatala Canyon plugin that&#39;s why it&#39;s a answer procedure data but coordinated with the Clarion Sousa planning states an audit so padena part was opinion waiting messages encoded or pontil anti-darwinian where ultimately they decide on the timing client a sagina clients personnel on guard whenever a so you letter B yeah their clients personal younger to meeting atomic the management&#39;s instructions so Baba kama contains a physical town make sure Merrigan copy no instructions they on it if you move instructions then panic at antennas account he observed Monaco complied management&#39;s instructions okay and the performance of procedures for reporting and controlling the results of the physical inventory count okay then letter C misimpression Pelton Anderson a manual per observe Brenda policy knows about you and data but a check not Empress incident layer and then obtaining all the evidence as to the reliability of management style procedures Hey so yeah Amana procedures involved in the attendance at the physical town number two then now young laughter a B and C they n okay Anna classic Positas playin so you need your next question okay number three so young a B and C a no classing procedure Shion so by the way naked man am nota there are three types of all the procedures according to the objective of doing the procedure and what are the three types of audit procedures at known risk assessment tests of controls okay substantive a so young three types of OD procedures okay so briefly young risk assessment an objective and of course assess the risk actually pensioner asleep every overall and your assertions level Hey so yeah nice anapanasati Orion so I know labels in assessing risk so again it on purpose Jana assess the risk so FS Leben and assertion Level II tournament tests of controls and a nominal portion yet another pest controls tester controls at an immediate decision whether controls are design and operating effectively so design buyer and operating effectively automaton tests of controls a autonomous substantive which is the focus of auditing problems Ngongotaha canina a non-partisan K detect and detect material misstatements okay they are dependents of an audit procedure pending mugging risk assessment predictors of controls peddling substantive it on universe&#39; a B and C gerenian after doing risk assessment so if it&#39;s a VN delta post a risk assessment bae yong gagawin say a B and C and sahaja Delta asset a post a risk assessment journey so either tests of control stallion or substantive depending on the auditors risk assessment in a personal level of risk assessment so depending on the auditors assessment plan approach and the specific procedures carried out by acromion procedures noted in number two I design Parimal on mminton designed and operating effectively on controls tests of controls and corrosion purpose donkey novice and Umberto I Parramatta Tech Namba Tyrian misstatements classify data and ass substantive number three then pain okay now we possibly can it as a number one letter a attendance a physical count is required unless impracticable you need your next question in which of the following cases is attendance a physical inventory counting in practicable so son John a much a justify you his deepak attendant say mix opinion required bank attendee it&#39;s a physical count so an operating the Hillary Taylor I never gotten to see impractical Pollyanna so say good John later well inventory is held in a location that may pose threats to the safety of the audit or compromising safety are valid reason for not attending the basically you later be that&#39;s not a valid reason so like an madam noti&#39;m letter be so very clear Jan appeal my standards okay the matter of deep very clear judge of PSA 501 the matter of difficulty time for post in both is not is not in itself a valid basis for the auditor to omit an audit procedure for which there is no alternative or to be satisfied with all the evidence that is less than perceive so in the predicate on Ellen happy young difficulty time for was innocent to meet that procedure a federal safety lamp abuse happened valid religion pain so you need a problem a pop and Onuaku Indian obtains a physical count to see impracticable so epic Sabine on Indiana cotton indeed ago value standard procedures of verified an existence in condition of inventory so Anton on an embargo winner auditorium in that case reenacted of the number five if attendance at physical inventory counting is not a impracticable so dynamic compromising see Tina auditor so I&#39;m gonna win a multi turn okay standard procedure in fact attains a physical turn impracticable even so I&#39;m gonna win an audit or later alternative Nala so in the podium standard advertiser alternative is a pendulum a given procedure parama buried by an existence and condition Canaan Gurkha when iam later be naked madam dot will be so the auditors will modify the opinion in letter a is that possible to do so home in demagogue Ohio alternative ok Andina satisfied alternative so it will result in multiplication of the opinion at another beginning opinion Chaminda possible a an onsen origin made up a drug during procedure Hindi nagawa Yin Yin Dana Cowin spoke limitation at the Palmeiro is scope limitation in the Napa paavada evidence a potential ok so the reading of a poem evidence and operating opinions on either qualified for disclaimer peso unum normal impeded people even a couple can lack of evidence and issue they young letters in a man can endure a visitor the camera not you&#39;ll see so in letter C if the auditor is unable to attend physical inventory don&#39;t in indeed answer impracticable but due to an unforeseen circumstances okay for example you know where host and on out of town so NACA schedule if I do not want another area in a pencil my book lamp above you unforeseen circumstance Asian some pending Irwin make or observe some physical turns on an alternative date nylon hey so in perform all the procedures fun intervening transactions so abacus iam case kappa impracticable italic Hindi maracas pintado serie became in an alternate ignominy demagogue Hawaiian modify the opinion from violence unforeseen circumstances am Tyler come on up dilemna alternative day games okay they postpone Mona&#39;s paper supply will postpone Yamaha contagion here okay poor Cindy Pentium D repeating do nothing a five-letter a at the main a question only alternative name so Papa no not in masses are being a total na may inventory indeterminate in a PITA of inventory so that&#39;s the question in number six a an alternative kapenga impracticable a to attend a day later a inspection of documentation of the subsequent sale of specific inventory items purchased pilot metoya before so prior to the physical inventory County so Tom American Kuna event a and subsequently I am attention - Toma my inventory say no if event approval animal inventory pero make sure de una Penta neon vanilla bean Alicia before the PC chemical Pasi convenient after ending a gay excision at the time of God I am a little letter B the city letter B Benelli up Terry Oh in the existing yen at the time of growth you say I&#39;m concerned that injured whom the KX is pain inventory a at the time of supposed to be basically so I&#39;ve been a captain toddle impracticable I check your sub sequences noventa Berto subsequently totora main mentoring where you&#39;ve been a little before the physical count next number seven a pandemonium inventory down under the post to be in control of a third party that was a material known to the financial statements so papilledema be buried by kaneki excision so panama be verify of condition yet okay so the hip third party and make pasta didn&#39;t say inventory per diem later a not confirmed allah so he confirmed alums a third party anyway third party de manana or whether any later be so human that was the area that was fun inspect papaya but Somalian young a and be serviceable John letter C painting a only wedding be only or combination of a and B again as operating a love have a Dana reading Binghamton or combination and a envy so to verify existence and condition of inventory held by a third party case seven letter C number which of the following equation is snappa it&#39;s not it&#39;s not one of the independent auditors objectives regarding audit of inventories by the way huh okay in developing or deep objectives the auditor will consider the assertions Unimog assertion stand under the pitch one of the new material a summary and a Poisson ratio assertions and ultimate essential an entity is presented mainly a personal specific assertions of it is paid at the secondary lecture notes so in developing the audit objectives the auditor will consider those assertions payable in procedure lien if we pay a penny of assertion Kisame inserted a Towanda Oh deep objectives a solid see objectively on yes or no okay letter A verifying that inventory content is owned by the playa so I don&#39;t connect an ownership that is an audit objective related to us like an unknown rights okay so you letter a and it be verified in rights ownership letter B verifying that the client has used proper inventory pricing pricing effects valuation another objectivity in relation to valuation letter C asserting the physical quantities of inventory on hand okay so that&#39;s verifying what existence so they are you a B and C the our audit objectives verifying these assertions so Hindi kazama&#39;s objectives then verifying that all inventory all by the client is sadhana company on hand not necessarily the seabed in among own but not on hand so that partying palitana pain so the objective turn verifying that all inventory all by the client is included is included in inventory and that is in relation to what completeness so pretty old but not on an indicator not one hand a separating located in other areas but still owned by the company so again an offer is included not necessarily on that things are in death okay next number nine so by the way Hannity mamasan polar the Vedic structured equation either be began conduct procedure khatallah ginetto procedure it on top was committed on Saturn young related assertion or did begin sorry Tottenham the man what is the procedure reading and procedure most likely waiting lists lightly substantive procedures okay so number nine and auditor is most likely to expect loan agreements under which and entities inventories are highly Minato pledged in mid Nepal apparel and inventory as discussed in FA our Capitan inventory economic Napolitan and a requirement on the part NACA dissolution so require disclosure on financing arrangements so relieved at the end to what ascension I&#39;m psychic John later see unconcerned at injured behind in a disclosed properly so presentation and disclosure that&#39;s the related assertion in next number ten I told a bit bit again procedure doesn&#39;t Ilocano an assertion yet so this one and all the toward selected items for tests counts while observing appliance physical inventory the auditor then trace the test turns to the clients inventory listing so I live in Arizona Saoirse not only the level ample people at virgin they it of existence and completeness Hey so which one existence or completeness mm-hmm completeness or existence and utterly genuinely made up upon busy place of our Amina per conversion so existence completeness a and so Parana comma confuse Donita madam technique you need to check the direction of the procedure that&#39;s our guy so I know you know what about it on certain situation John after you need of inventory and your clients physical inventory listing and a teen summary normally pregnant conduct not basic account Papa noble element pulanana biram measure near allegan attack survey Aparna talk epic Sabina counted say tempered okay so boom Ohio audit or non sample nonpartisan test counts and in a whine about it or did resna so properly of Direction K Kohanim Tesco in residence at least so Tracy you can omit the procedure so an objective giant Siddappa lahat Nam Nandita Solis may corresponding degrees at Lompoc stayin dependent on solace so an efficient memory Panama detour from Etobicoke items title represented beta tax or the discounts Inuyama Dulce lease Chapin Indiana potato dos Alistair pool analysts are so clearly anniversary verify existence or completeness complete nation come Yabba nii-sama don&#39;t solicitor say comedy nights are cooler yum items so complication so answer number 10 Bravo okay by the way your question the other given here in the October 2019 pizza so you need to decide people munis on poll normal questions Sauvignon young structure a big and kind of procedure and of essential for essential annum procedure okay population begin existence but they the next our team direction to Mohan and some poll to Salas tahun he nana p.m. corresponding tanks but nandan Solis tahun Valentin are invincible those items are not existing so they are at animal and agrarian about existence so Donovan bound Ching okay so a telethon about Ching and tracing the difference lies on the direction so I&#39;m tracing from source to records normally use to verify completeness it on vouching from records to source okay so used to verify existence but clear hye-young direction as a pagina clear and direction vanilla coke again hadouken coming in and sat direction a the same d TOA Patna Carmelita sinem direction and a gamble Eden pay direction a family name procedure so fed up a theory of objective paraplegia direction I mean the classic leery of objective so indicating clearly own direction a submariner man might identify objective yo dapat much a cool and in the game direction you have some pointers Shanna some pointers in the audit of inventory so again I&#39;m auditing problems indicia purely focused beta-catenin Matata certainly and also in auditing beauty castlemaine substantive procedures Idina in the last two or three exams but a me reveal questions on procedures paint a little piece of aluminum examiner Kumar would not come back od can see Papa mama diaphragm and adjusted to adjusted pillow panel a podium impedance and a pillar and procedure para back wanna evidences that but Cleveland&#39;s a disincentive ready Anna disappeared I took evinced a problem here ok so simply forgetting than the old it can add later on DARPA came up lame a procedures name okay Janet on a medium traditional Kappa problems now so an app engine adjusted balance in so notice this is audit of inventory pero Kazama co-ordinate engine related transactions in related transactions and the related accounts after an inventory personal revenue received but they should expenditure disbursement cycle to manufacturing company a part insulin production cycle some rhyming cycles in body yeah inventory so revenue receipt expenditure disbursement a production side okay so Gaga meet Munna Bhai heart I&#39;ll first problem I am NOT Anita audit approach Munna so parama - a very typical the audit approach so Gardo rato L&amp;P accounts so prepare 5p accounts one for each requirement here highlight that in your adjusting entries came in son indica toponymy no adjusted amounts that are in the same entry so entry to adjust it up but my one of the time to move on now adjusting entries we sewed up a champ Ramona my young man and chance to attain Antioch on start from under Justin so this one given a dose of problem are you unadjusted okay so these are the requirements about what requirement the waka nante at all start from unadjusted solo game ammonia unadjusted a so you audit approach from and adjusting to what kind of adjusting entries post to get the adjusted balance okay now atonium background so you were engaged by the entity for the audit of its FS for the year ended December 31 2020 the company is engaged in hustling business and makes all sales take note of this we did this later a markup 25% so on basis cost we need that later so given young sales and purchases books ATM transactions a few days before year end so after you an adjusted balance of sales this one your closing entry amah purchases and adjusted so angel Nando starting Pia TransCanada also given an inventory accounts receivable accounts payable and adjusted balances given a now in relation to inventory you observe the onion required procedure you observe the piece achill inventory of the goods in the warehouses so Don Dona kalakeya my inventory so Kalin get away own physical come December 31 and were satisfied that it was properly taken sorry two thousand three thousand 800 basis and physical come okay in the clients warehouse on December 31 now okay so you know no problems oh did similar those are no problems not in danger FA our wedding began can an unadjusted tapas did became our findings together semana FA and the problems normally not a specified on whom item by eye luden or excluded now Saudi in some cases he began telling them findings in this has a billion Kuna include orna exclusive item K so k obtained purpose of antenna Tejada is standard assumptions so he summarized with an attempt at silent and problem so a main assertion rather unmade assumption okay only those items basically present inside the warehouse were included so if it&#39;s a bientot consolation problem young 600,000 a universal open warehouse byaku NASA lab Aston warehouse in Dina included so Union main assertion main assumption an implication of assumption then so Medina didn&#39;t know he again annum standard assumption inside the warehouse included outside the warehouse excluded therefore and Bob and a and a dinger there are certain items that are normally excluded barkat &#39;no exclude a similar survey house nasa lavas not inside the warehouse you can Oldham company on top again included so not in the warehouse excluding a Oldham client should be included in this situation what is the effect on inventory the put in include not exclude unknown affect me and say inventory inventory is under stated olivine decima and by the way her coca-cola mutiny toha and poor post them substantive procedures detect material misstatements at the insula sobbing misstatement stay and it can be under or open statement at all and their misstated an inventory you&#39;re not be so nothing but they take Kappa Gamma Govardhana substantive procedures so yeah and I&#39;m gonna pop and they are so and they are normally night I&#39;m stayin now exclude to say when I saw a house Farrow old up at including so number one John Cap&#39;n in transit sempre transit by exclusion okay consider the transaction and the terms of shipment come young I a purchase transaction a OB shipping point while in transit all day and benefit in inclusion in transit pass thanks Lou okay Duncan f OB destination no problem conceives the Mannion k @m or be destination and sold buyer so he had a part in include payin entrance Cigna excluded them okay Lampoon shipping point Tessa soltner so come purchase welcome program from F will be destination from sale demand when a problem from a poor be shipping point so negative issue should be included yet but excluded can say entrancing a another item you out on consignment kasi Nandu own type ensign iam items well as a warehouse okay so what else in general well as a warehouse located in other places so pencil later and as I&#39;m sure now exclusion okay again inside included outside excluded another problem there are certain items that are normally included kasi NASA logo plan awareness a hindi naman palace accompanied on should be excluded and then uh madam effect in so deeper inventories one overstated okay again it can be over it can be under so it&#39;ll open AMA effective okay and what are those items that happen in exclude a NASA warehouse tank lumen gentium held on consignment the entity is the consignment you NASA company included now general rule general rule and shipped and soon he&#39;s a general rule and ship and so careful not so warehouse by okay on my own included the same assumption and shipped and so they allow me my exceptions Jenny beta to let the mama me to order so once completed considered sold in and impassive warehouse so still included but already soon in general on goods already so unum do not answer warehouse for safe keeping porpoises for safekeeping porpoises salami Indaba in excluded in under the path nothing so yeah Amana Bob and Diana Tina kassig a porpoise nothing but it again young miss is statement there it can be under or over and by the way of course applicable demure assumptions kept silent and problem because it means Sunday problems has a beer in transit in include conceding an assumption a clickable only if the problem is silent okay yeah so using those assumptions I don&#39;t let me edit out this a physical town when I cannot any informations of problem okay aside from the physical count and the punky noir attendance at the physical curve and the punk in Havana so now conduct a nothing at all of the sales and purchases cut-off tests under the Manipur Poznan cut of test am so a Taliban on purpose Ian determine where they&#39;re the transactions were recorded in the correct accounting period and wedding but it takes a procedure naeun young 2020 transaction in a record than 21 okay animal DARPA 21 the recruitment 2020 so Ron cattle interpreting my detection P and as part of the sales and purchases cut of test connecting las documents news item last receiving report down the Nagar made at all 1063 refer to purchases K repair to purchases ok &amp; eun-jung last down and a garment RR 1063 and based on purchases books and engine cooling the record another implication Yamaha are after that ended on a record so on the record Lofgren 63 also you noted that no shipments will happen shipments so no shipments had been made on any sales invoices whose number is larger than nine six in Roberto six Marin Dominic are a virgin now si number a higher than 960 yes at all three items okay and shipped unsold Pia peridot Hungarian very clear now a record as what seems so adjusting entry number one okay and shipped and soul erroneously recording as scenes so get the total so first adjusting entry debit sales cancel Natyam sales total hundred thirty thousand credit accounts receivable erroneously the a record as its will upon shipment a after each entry okay pause to the theater suppose to the affected t adults okay now that last away RoSPA inventory will happen on shipment no problem on inventory so properly included she&#39;ll say inventory okay next you also take the following additional information so later a included in the warehouse physical inventory at December 31 where goods which has been purchased and unity Cigna are our number ten sixteen okay but for which the invoice was not received until the following year so a little later a purchase transaction now received the double goods is a - account so no problem on inventory included share properly paronella t of employees so make possible problem chance epic record and purchases sorry prepare to purchases are are 1060 recorded so Tina Munim Anna record after 59 and on UNIX dampened an RR 61 so yet an advantage kappa Gandaki events sequentially numbered you can easily account for the completeness clearly hindi no record young 1060 okay I see after 59 1861 de so indeed a record young 16 happy so unrecorded purchases so adjusting entry hey David so debit purchases eighteen thousand credit accounts payable again Valon problema higher inventory included properly hindi lambda record young purchases supposed to the deer hunts&#39; supposed to the affected theorems okay next so notice now after lien Bennigan&#39;s - Bennigan&#39;s at insa problem the post on banco de for the daughter anna toxin 800 deep findings parish am preparing a poem on Appendix A and India by doing audit procedures and observed them physical the grip unum purchases in siesta together paladin document their findings in narrative okay so they actually they do my advantage capybara venom or did experience cause if I come here of an audit experience having been a possible problem the big picture maker in situation okay so after Leah so us become an exam mirror cinnamon requirement in experience so the top a society in particular to eat more right well upon experience spread in a mock exam so certain part of a pattern exam Buddha second experience okay so say us animal experience Munna Bhai tokamak exa hey Sofia second inner you make some dinner this I&#39;m gonna eat a teaspoon medical knowledge random papal practice okay so you need octal engine ago and my examiners my mom equations a develop and practice in problema in the pediment aquarium experience so your afternoon param proposals before II Dana pelegrin may experience monogamous exam Erin Ovalle Dina Toledo Madigan now whether they propose and then a survey ganito deeper so we have many Tomica that you haven&#39;t been a person beyond findings must back and adjourn Connecticut a my own situation but now don&#39;t isolate build a harbor been a possible but a monopoly talkin picture or bead Union actively / beyond epics appeal or named Indian mission pedo kovalyova happen Pina Bausch amo the detriment baby picture participation big lambda D deliver 19&#39;s a good of aspirin decor you excel in pictures no no baby do not be do tapas papi Sagamihara dance so hella may ever see an erotic parenting so narrative so hot on a date oriental again you later beer a saboteur on the evening of December 31 there were two trucks in the company sighting is if Indonesian so and upon situations in a savage insulator pou town made elegant rock significant warehouse a suddenly be civilian Kumail abandoned truck nyan Camilla mantra the NASA alabaster warehouse Ian hindi nia sharma sophistical town so a new example now located in other places located shine other places a barber Tina Tina Mannion kanthamma bana exclude a young trap number 1 2 3 and also vision in a load oil January 2 of the following year and receive on our Adam Burton 63 as noted earlier Tama Ito the record properly on Iranian so the receive nough nough record properly by allah and problema inundated unload January 2 inundated physical Khan December 31 they are on the date of countenance and a pass/fail a warehouse an Olympic Sabean hindi nice aluminum truck lion so excluded but should be included so adjusting entry okay debit inventory vision a Sammy refer to our our 1063 Nanda Yohan so David inventory 64,000 credit P&amp;L Sunbury all cause of 660 portals so one problem hi on purchases properly in a record so head and then unload generally to hindi nia sharma you inventory so indeed is a masa inventory in demand entre okay under the man item 1 for 3 in 1 for 3 loaded until December 31 so Milligan a salut December 31 pero O&#39;Malley&#39;s LOM sock company premises January 2 a big Savion and shipped and soon and shipped and sold by an invoice number than 16 refer to sales copy Technium sales now a record by of 9 6 8 know properly not recording so what if I am problem on sales Tamaran properly not recorded I&#39;m problema that is silent and problem an assumption by the way couple Selita nemuri on physical town after office hours upon after office arstan Aryan Khanna illa bust na na Iligan Osetra babu panic on Ibiza bein at the time of count one aniseh warehouse in Dominion and then a syllabus now what happened excluding unsold peon should be included so adjusting entry same pay with track 1 2 3 so David inventory algorithm hundred thousand selling pressure dissipation invasion so he did abide that in the end on 1.25 so a marker 25 percent based on cost so they beat inventory hundred thousand selling price divided by one point when different credit P&amp;L summary or also so original abandoned ixnay on the exclude paradata included while on problem sales even a record well our problems of purchases properly night record post the entries impose the angles okay so postman adenine da da da da so after each entry post market parody mccauley Mouton okay that fabric tight is a problem okay item later sinneth Ayanna temporarily stranded at December 31 at the railroad siding were to delivery trucks in route to a customer so Adam transaction Ito sales tuna stranded Ian at December 31 epic severe in transit so in transition okay terms of shipment I own it all be destination so transaction sales in transit and stranded K AB or B destination sales invoice number 966 Roberta seems the record by of 966 yes erroneously the cecum f OB destination and sold by and while in transit not very clear the record sure seems erroneously so adjusting entry David pay sales cancel nothing 150 thousand credit accounts receivable okay still in transit a a OB destination Italian transit now exclude Nancy inventory unsold Potter but including so another adjusting entry a debit inventory so hundred fifty thousand that&#39;s the selling price divided not enough 1.25 so 25 percent markup based on cost credit P&amp;L summary or loss of six so what happened to that item the record erroneously a sales now exclude erroneously from inventory so themselves overstated that was inventory under single post entry okay thanks later did a Tyler and Ruth to the Clarion okay on December 31 so in transit and in transition was a truckload of goods received on our number 1064 so indeed an array accordion and will in the record 1063 terms all be destination at Amala purchase transaction in transit f OB destination properly not recorded okay and properly not included so letter d like a nun no no adjusting entry so it&#39;ll later dia like an annuity and no adjusting entry okay so properly not recorded properly not included so no adjustment needed so excluded properly properly not recorded now post entries get the adjusted balances get the adjust their balances Anagha you know typical audit approach and adjusted prepare adjusting entries pay then adjusted balances again the problem maeín per degaton amla entries predicated on linear procedures a chévre usually in italian adjusted amongst so check your postings answers

Transcript for:Inventory Audit Lecture Notes

Transcript for:
Inventory Audit Lecture Notes