Business Finance Homework Help

Part 1 

Observation of a client’s inventory is a mandatory audit procedure. Address the following in your discussion post:

• What part should the auditors play in planning the physical inventory?
• Describe the procedures performed by the auditors during their observation of a client’s physical inventory.
• Why do the auditors document their inventory test counts in their working papers?
• Why are the auditors concerned with detecting damaged and obsolete goods?
• How do the auditors test for damaged goods in the client’s inventory?
• How do the auditors test for obsolete goods in the client’s inventory?

Write: Make sure your response addressing the following questions is more than 200 words and that you include an in-text citation or a brief quote from the reading material where appropriate. You may find the Writing Center’s APA: Citing Within Your Paper (Links to an external site.) resource helpful in citing your sources.

Part 2 

Plant and equipment are not as inherently risky as are other assets, such as inventories and accounts receivable. However, a company should still endeavor to maintain effective internal control over plant and equipment.

Address the following in your discussion post:

• Describe the principal purpose of internal controls relating to plant and equipment.
• List and describe four major controls applicable to plant and equipment.
• Describe two ways that the auditors obtain evidence that there are no significant amounts of unrecorded retirements of property (land).
• Describe three ways that the auditors obtain evidence that there are no significant amounts of unrecorded retirements of equipment.