No. Audit procedures 1 Compare the client's stock-count report at an interim date with the perpetual inventory master file. 2 3 4 5 Account for a sequence of raw material tags and trace each tag to the physical raw material to make sure it actually exists Test the unit price on the final Raw Material summary with vendors' invoices. Trace the recorded additions on the finished goods perpetual inventory master file to the completed production records Inquire factory employees for items that are damaged, dust-covered or located in inappropriate places Requirements: a) Identify type of tests for each procedure b) State related audit objective(s) for each procedure and explain your rationale.
No. Audit procedures 1 Compare the client's stock-count report at an interim date with the perpetual inventory master file. 2 3 4 5 Account for a sequence of raw material tags and trace each tag to the physical raw material to make sure it actually exists Test the unit price on the final Raw Material summary with vendors' invoices. Trace the recorded additions on the finished goods perpetual inventory master file to the completed production records Inquire factory employees for items that are damaged, dust-covered or located in inappropriate places Requirements: a) Identify type of tests for each procedure b) State related audit objective(s) for each procedure and explain your rationale.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:No. Audit procedures
1
Compare the client's stock-count report at an interim date with the perpetual inventory
master file.
2
3
4
5
Account for a sequence of raw material tags and trace each tag to the physical raw
material to make sure it actually exists
Test the unit price on the final Raw Material summary with vendors' invoices.
Trace the recorded additions on the finished goods perpetual inventory master file to
the completed production records
Inquire factory employees for items that are damaged, dust-covered or located in
inappropriate places
Requirements:
a) Identify type of tests for each procedure
b) State related audit objective(s) for each procedure and explain your rationale.
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