Cravens was asked to perform the first audit of a wholesale business that does not maintain perpetual inventory records. Cravens has observed the current inventory but has not observed the physical inventory at the previous year-end date and concludes that the opening inventory balance, which is not auditable, is a material factor in the determination of cost of goods sold for the current year. Cravens will probably

Are you having trouble answering the question “Cravens was asked to perform the first audit of a wholesale business that does not maintain perpetual inventory records. Cravens has observed the current inventory but has not observed the physical inventory at the previous year-end date and concludes that the opening inventory balance, which is not auditable, is a material factor in the determination of cost of goods sold for the current year. Cravens will probably”? If that’s the case, you don’t need to worry anymore. Azanswer has brought you the correct answer to your question.

Cravens was asked to perform the first audit of a wholesale business that does not maintain perpetual inventory records. Cravens has observed the current inventory but has not observed the physical inventory at the previous year-end date and concludes that the opening inventory balance, which is not auditable, is a material factor in the determination of cost of goods sold for the current year. Cravens will probably

A. Decline the engagement.
B. Express an unqualified/unmodified opinion on the balance sheet and income statement except for inventory.
C. Issue a disclaimer of opinion.
D. Issue an adverse opinion.

Answer: Issue a disclaimer of opinion.

We hope you have got the correct answer to your question “Cravens was asked to perform the first audit of a wholesale business that does not maintain perpetual inventory records. Cravens has observed the current inventory but has not observed the physical inventory at the previous year-end date and concludes that the opening inventory balance, which is not auditable, is a material factor in the determination of cost of goods sold for the current year. Cravens will probably”, which was part of Accounting MCQs & Answers. Thanks for choosing us.

Leave a Reply 0

Your email address will not be published. Required fields are marked *