Discuss the auditor's responsibilities for inventory maintained in public warehouses or with other outside custodians
What will be an ideal response?
An auditor's physical examination of inventory is not required if inventory is housed in a public warehouse or overseen by outside custodians. In these situations, auditors verify inventory by confirmation with the custodian. However, the auditor may perform additional procedures if the amounts involved are significant. These additional procedures may include: an investigation of the custodian's inventory procedures, obtaining an independent accountant's report on the custodian's control procedures over the custody of goods, or observing the physical count of goods held by the custodian, if practical.
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To encourage inward FDI, it is increasingly common for governments to:
A. offer tax concessions to foreign firms that invest in their countries. B. exclude foreign companies from specific industries. C. require that local investors own a significant proportion of the equity in a joint venture. D. impose high custom duties on foreign firms. E. prohibit MNEs from joining a cartel.
In most instances, as the amount of debt rises, the common stockholders will decrease their required rate of return
Indicate whether this statement is true or false.