[Anonymous]

From the auditor’s point of view, inventory counts are more acceptable prior to the year-end when:

a. IC is weak.

b. Inventory is slow-moving.

c. Significant amounts of inventory are held on a consignment basis.

d. Accurate perpetual inventory records are maintained.

Correct answer is D.

Sure, I got that correct!

WTB’S explanation: When well-kept perpetual records are maintained, the auditor’s observation procedures usually can be performed either DURING or AFTER the end of the period under audit.

This I understand, when IC is strong or effective, we can adjust the timing (of the “NET”) of audit procedures, i.e., making it less intense to interim period, instead of performing it at the year-end.

I am just confused with what interim period literally covers.

Is it anything between Jan. 1 up to Dec 30th, while year-end should be literally Dec. 31 or BS date or fiscal year-end?

Is the phrase ‘during or after the end of the period under audit’ considered an interim period?

Sometimes, I’d come across with this NEAR year-end. Would that fall under interim period or that’s assumed to be year-end already when it’s only NEAR the year-end.

[Anonymous]

Bump

[Anonymous]

My test is tomorrow early a.m.

I will really appreciate it if someone can take time to answer this today.

Thanks a lot.

[Author]

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