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The audit of year-end physical inventories should include steps to verify that the client's ...

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The audit of year-end physical inventories should include steps to verify that the client's ...

The audit of year-end physical inventories should include steps to verify that the client's purchases and sales cutoffs were adequate. The audit steps should be designed to detect whether merchandise included in the physical count at year-end was not recorded as a

▸ sale in the current period.

▸ sale in the subsequent period.

▸ purchase in the current period.

▸ purchase return in the subsequent period.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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