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Deliverable 1
Deliverable 1
Widgets - 10mm -$3,742.00 Errors in the count. There is still 5% in ending inventory.
Widgets - 20mm $0 Ending Balance ($39.95) Justified. The company utilized (70+25)
leaving only 5 units. The value 5x7.99 =39.95, is justified.
$0 Ending Balance Justified. No Adjustment / Information from the
Hex bolts
supplier report.
Widgets - 15mm $0 Ending Balance Justified. No purchases made since year 3.
Task #2
Based on the work performed above, select from the option list provided a conclusion on the ending inventory
balance. Assume that the auditor performed any follow-up procedures to confirm the initial reasons for the differences
identified and therefore any adjustments required are accurate and there are no other adjustments to consider other than
those above.
Conclusion:
Based on the inventory work performed, the inventory balance is not materially misstated because the required adjustments identified
are less than audit materiality.