Hi, I am having a hard time with performing the test calculations


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Hi, I am having a hard time with performing the test calculations and answering the questions associated. Can someone provide some assistance please? Thank you Question 1.docx 1) You are auditing a firm’s ending inventory balance. You obtained a complete listing of every item that made up the ending inventory balance from the client’s subsidiary inventory ledger. At the same time that the client took its physical count of the items in ending inventory, you selected a sample of items from the listing and performed you own count of the number of that item in ending inventory. You then compared your count to the client’s count and noted any differences in your working papers. Then you obtained a listing of the costs assigned to each item of inventory in your sample and verified the cost to purchase invoices from the vendors. Finally, you multiplied the number in your count by your costs and compared the resulting amount to client’s inventory subsidiary ledger. You traced the total of their subsidiary ledger to their general ledger account. a) For each of the following tests you performed, describe the purpose of the test to include all the audit objectives involved. i) Counting the items in inventory ii) Verifying the costs per item iii) Tracing the subsidiary ledger total to the general ledger The total amount shown on the client’s subsidiary ledger did match their general ledger balance, but you found differences in the subsidiary ledger and your audit tests in both the number of items in inventory and costs per items. These errors totaled more than your tolerable misstatement. Discuss what alternatives you have to address this difference

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