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AUDIT Objectives determine whether:A. Stores and spares balances represent all spares and supplies which are owned by the entity expected to be covered in operations, physically exist and are properly
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Stores and spares balances refer to the inventory of materials and parts that a company keeps on hand for maintenance, repairs, and operations.
Companies in certain industries, such as manufacturing and transportation, are typically required to file stores and spares balances.
Stores and spares balances are usually filled out by conducting a physical inventory count and recording the quantities and values of items on hand.
The purpose of stores and spares balances is to ensure that companies have an adequate supply of materials and parts to support their operations.
Information such as the quantity, value, and location of materials and parts on hand must be reported on stores and spares balances.
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