The following misstatements are included in the inventory and related records of Westbox Manufacturing Company: 4.After the auditor left the premises, several inventory tags were lost and were not included in the final inventory summary. 5.During the physical count, several obsolete inventory items were included. 6.Because of a significant increase in volume during the current year and excellent control over manufacturing overhead costs, the manufacturing overhead rate applied to inventory was far greater than actual cost. 7.An inventory item was priced at $12 each instead of at the correct cost of $12 per dozen. Required For each misstatement, state an internal control that should have prevented it from occurring. For each misstatement, state a substantive audit procedure that can be used to uncover it.
The following misstatements are included in the inventory and related records of Westbox Manufacturing Company:
4.After the auditor left the premises, several inventory tags were lost and were not included in the final inventory summary.
5.During the physical count, several obsolete inventory items were included.
6.Because of a significant increase in volume during the current year and excellent control over
7.An inventory item was priced at $12 each instead of at the correct cost of $12 per dozen.
Required For each misstatement, state an internal control that should have prevented it from occurring. For each misstatement, state a substantive
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