Identify Three Analytical Procedures Commonly Used When Auditing Accounts in the Inventory

question 19

Essay

Identify three analytical procedures commonly used when auditing accounts in the inventory and warehousing cycle.

---

Definitions:

Raw Materials

Basic materials and substances used in the initial stages of production to create finished goods.

Job Order Cost System

An accounting system that assigns costs to specific production batches or jobs, useful for companies producing unique or custom products.

Process Cost System

A method of accounting used in manufacturing where costs are assigned to products based on the processes they undergo.

Fringe Benefits

Additional compensations given to employees beyond their regular salary or wages, such as health insurance, retirement plans, or company cars.