In this lesson, Nick Palazzolo, CPA, guides students through a series of practice questions related to inventory, investment, and other cycles. He covers various management assertions, such as completeness, existence, valuation, and presentation. Students will also learn about the importance of taking a physical inventory count at a cutoff date and how it ties to the assertion of completeness. Additionally, the lesson clarifies who is responsible for counting inventory during an audit and emphasizes the significance of segregating duties within a company's inventory cycle for proper internal controls, including authorization, record-keeping, and custody. This lesson will help students gain a deeper understanding of the concepts and improve their ability to answer AUD exam questions successfully.
Lesson: Inventory, Investment, & Other Cycles Practice Questions
In this lesson, Nick Palazzolo, CPA, guides students through a series of practice questions related to inventory, investment, and other cycles. He covers various management assertions, such as completeness, existence, valuation, and presentation. Students will also learn about the importance of taking a physical inventory count at a cutoff date and how it ties to the assertion of completeness. Additionally, the lesson clarifies who is responsible for counting inventory during an audit and emphasizes the significance of segregating duties within a company's inventory cycle for proper internal controls, including authorization, record-keeping, and custody. This lesson will help students gain a deeper understanding of the concepts and improve their ability to answer AUD exam questions successfully.
Updated: June 22, 2023 Create an account