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    Aud 34PB2ND-1 PDF

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    Love Sunshine Bancale
    The document describes an audit procedure performed on inventory for Rico Corporation. The auditor conducted a cut-off test on inventory shipments and receipts around the balance sheet date of December 31, 2016. The test noted several inventory shipments and receipts before and after the balance sheet date, with amounts ranging from P16,200 to P36,800. The auditor also reviewed purchase receipts around the same period, noting receipts between P11,100 to P25,500. Cut-off tests help assess whether transactions are recorded in the proper period to accurately reflect year-end inventory balances.

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    Aud 34PB2ND-1 PDF

    Uploaded by

    Love Sunshine Bancale
    33 views1 page
    The document describes an audit procedure performed on inventory for Rico Corporation. The auditor conducted a cut-off test on inventory shipments and receipts around the balance sheet date of December 31, 2016. The test noted several inventory shipments and receipts before and after the balance sheet date, with amounts ranging from P16,200 to P36,800. The auditor also reviewed purchase receipts around the same period, noting receipts between P11,100 to P25,500. Cut-off tests help assess whether transactions are recorded in the proper period to accurately reflect year-end inventory balances.

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    AUD_34PB2ND-1.pdf

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    The document describes an audit procedure performed on inventory for Rico Corporation. The auditor conducted a cut-off test on inventory shipments and receipts around the balance sheet date of December 31, 2016. The test noted several inventory shipments and receipts before and after the balance sheet date, with amounts ranging from P16,200 to P36,800. The auditor also reviewed purchase receipts around the same period, noting receipts between P11,100 to P25,500. Cut-off tests help assess whether transactions are recorded in the proper period to accurately reflect year-end inventory balances.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    33 views1 page

    Aud 34PB2ND-1 PDF

    Uploaded by

    Love Sunshine Bancale
    The document describes an audit procedure performed on inventory for Rico Corporation. The auditor conducted a cut-off test on inventory shipments and receipts around the balance sheet date of December 31, 2016. The test noted several inventory shipments and receipts before and after the balance sheet date, with amounts ranging from P16,200 to P36,800. The auditor also reviewed purchase receipts around the same period, noting receipts between P11,100 to P25,500. Cut-off tests help assess whether transactions are recorded in the proper period to accurately reflect year-end inventory balances.

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    © All Rights Reserved
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    of 1

    ,/ ReSA

    The Revierv School of Accountancy


    tTel. Ntr. 735-98A7 & 734-3989
    AT'DITING 15 Septeuber 2AL7 (Saturday)
    Fina.I. Pre-Board Examination 03:00 P.M. to 06: 00 P.M.
    MT'I..TIPI,E CHOTCE
    fIISTBUCTfOHS: SeLect the correct answer for each of the folTawinq
    questions. Mark only one answer for each item by shading the l>ox
    corresponding to the letter of your choice on the sheet provided.
    S7:RICTLY NO ERASURES ARE ALLAWED. Use penciL no. 2 only.

    PROBLEITI 1:
    You were assigned to do a substantive test procedure on the
    merchandise j-nventories of your ar-rdit client, Rico Corporation
    As a result of your pr:eJ.irainar:y assessment of audit risk and the
    result of your test of controls over inventory shipments and
    receipts, you decided to -rendered a cut-off procedures on
    deliveries and recei-pt.s of goods several days before and after
    the balance sheet date. December 31, 2A76. -?he inventories
    reported per books amounLing to P234,500 was as a result of a
    physical count conducted on ttre clients' warehouse on December
    30, 20L6.

    Audit notes;
    a- A11 customers are withln a 3-5 days delivery area. Gross
    profit or.sales is at 501 . iIS- fast safes invoic
    :e<jo:ce:i as saies rr_ lnq December Sales Journal is SI No.
    2C824. ?he followinE j-s a sulunary of the cut-off made on
    s.1"" transactions:
    Shipment
    date Amot:nt | :lem
    '_::_:'_:__ __+ ,'11 r rks
    ano., t9
    1
    Dec Dec P2€.'tJ i I FOB Shiopino ooint
    ._ I _
    2C822 Dec 3i ,9?": I FCB Dest ination
    consignee)
    20e23 iciJ FOR Destination
    (in transi-t )
    20824 Dec- 29 Dec 31 | ZO, eOO FoB Shipping point
    (in transit)
    20825 Dec- 31 36,800 roB Shipping point
    (in transit)
    20826 Dec.. 30
    20827 Jan

    b. A1-l suppliers are withrn ]]-5 days delivery area. The last_
    lec-el.vilg report (RB ded in the December purchases
    .rournar rirzlg En.llo. og13!. ,rhe folro\^,mq i@tne
    cut-off made on purchases Lransactions:
    RR Date Amourrt llemarks
    68135 P1.6, za0 Shipcin
    EOB int
    6813 6 20,500 Destination
    FOB
    (frcm consignor)
    68L37 L9 900 FOB Destination
    68138 20,800 FOB Destination
    (in transiti
    68139 25,500 FoB Destination
    (in transit)
    6814 0 Jan 22,500 EOB Shipping'Point
    (in transit)
    68 141 Jan l_ 1, .100 FOB Shipping point

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