Chapter 11, Problem 11.5RQ

To determine

Concept Introduction:

Purchasing process: The purchasing process allowed the audit to perform as per the guidelines of purchasing. The audit follows the rule of the purchasing process and ensures that only related vendors can allow for the purchasing. The purchasing process included the guidelines of duties, delivery time, and prices to avoid the risks.

To describe:Two inherent risk factors that directly affect the purchasing process and the reason auditor should concern about the issues such as supply of raw material and the volatility in prices.