1. 

   goforCPA
   

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   Hi all....

   The below was from a multiple choice:

   1) Tracing Inventory tags to the Listing of inventory = Existence

   The below is from the Becker book:

   2) "The auditor should test the existence of the items on the client's inventory listing/report sheets by vouching a sample of items from the inventory listing/report sheet to the corresponding inventory tags"

   To me statements 1) & 2) above are opposing each other. Can someone explain which is correct for the existence assertion PLEASE???

   Have to pass in 2012..did not happen...shooting for 2013 and refuse to loose any credit!
   AUD - 73, 79
   REG - 86
   FAR - 72, 83
   BEC - ?? 2013 (thinking that this part would not be as difficult as the other 3)

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   Posted 1 year ago #
2. 

   mcwingnutz
   

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   In my understanding it should be:

   Floor to Report = Completeness (which it appears your answer #1 actually is this)

   Report to Floor = Existence (which is what the explanation is in #2)

   So either we both are misunderstanding the wording of that answer, or it is just wrong.

   AUD - 71,81
   BEC - 78
   REG - 81
   FAR - 69, 76 and Done!

   Posted 1 year ago #
3. 

   apbandj
   

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   This has got me all confused, too!

   Like Mcwingurtz said, I also believe #1 should be completeness. And in my list of keywords, I have that trace = completeness and vouch = existence.

   Would you mind posting the entire text of the MCQ for those of us who don't have Becker?

   FAR - 84 (Nov 2011)
   AUD - 94 (Feb 2012)
   BEC - 79 (May 2012)
   REG - 89 (Aug 2012)
   
   Done! Thanks Yaeger and NINJA!

   Posted 1 year ago #
4. 

   gabykats
   

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   your multiple choice answer in one (1) is definitely wrong.

   the tag is attached to the inventory item right? so how could the auditor need assurance that it exists?

   testing for existence assertion here is inefficiency.

   the best audit evidence is your own knowledge. something you can verify by your own means. then external evidence, then internal evidence... becker has a mnemonic.. a e i o or sumthing... (hate mnemonics.. so i couldnt tell u offhand wat the o was for.) other evidence???

   Posted 1 year ago #
5. 

   Jeff - another71.com
   

   online

   NINJA

   TC - VE

   T before V
   C before E

   TC - VE

   Free NINJA Notes/Audio/Flashcards

   Posted 1 year ago #
6. 

   goforCPA
   

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   Member

   All...I cannot find the exact MCQ but I made a note of the answer in my notes and while I was going through my notes I didn't think this sounded right. Based on some of your responses and what the book says I'll go with vouching from listing to the tags = existence.

   Thanks for your input...

   Have to pass in 2012..did not happen...shooting for 2013 and refuse to loose any credit!
   AUD - 73, 79
   REG - 86
   FAR - 72, 83
   BEC - ?? 2013 (thinking that this part would not be as difficult as the other 3)

   Posted 1 year ago #
7. 

   CashMoney10
   

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   Member

   Tracing/Completeness = Source to book

   Vouching/Existence = Book to source

   FAR - 5/10/12 | BEC - 5/30/12 | AUD - 7/11/12 | REG - 8/30/12
   Successfully completed with Roger CPA Review & Ninja Notes

   Posted 1 year ago #
8. 

   Peanut
   

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   Found it! I read this the other day and knew of the question I'll rewrite it

   To gain assurance that all inventory items in a client's inventory listing schedule are valid, an auditor most likely would trace:

   A. Inventory tags noted during the auditor's observation to items listed in the inventory-listing schedule

   B. Inventory tags noted during the auditor's observation to items listed in receiving reports and vendors' invoices

   C. Items listed in the inventory-listing schedule to inventory tags and the auditor's recorded count sheets

   D Items listed in receiving reports and vendor's invoices to the inventory-listing schedule

   Correct answer: C Tracing from the inventory schedule to the inventory tags and the auditor's record cound sheets verifies the validity (existence) of the items

   They try to trick you with the trace/exsistence

   AUD 81 (X4) Previous scores 59, 72, 72
   REG 80 (X3) Previous scores 59, 60
   FAR 75 (X2) Previous score 67
   BEC 79 (X2) Previous score 58

   Posted 1 year ago #

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