The Auditor Would Like to Test the Existence and Accuracy

question 65

Multiple Choice

The auditor would like to test the existence and accuracy of the transfer of goods from the raw materials storeroom to the manufacturing assembly lines.Which of the following audit procedures should be used?

• A)Conduct a variance analysis of the costs associated with manufacturing,looking for gross profit fluctuations.
• B)Account for a sequence of raw material requisitions,examining details and looking for proper approvals.
• C)Look at overtime records to determine the amount and timing of overtime hours used in the manufacturing process.
• D)Inquire with the inventory custodian regarding procedures used to transfer raw materials to the production line.

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Definitions:

Arthur Jensen

A psychologist known for his work in the study of intelligence and his controversial views on the influences of race on intelligence.

Philippe Rushton

A controversial psychologist known for his research on race, intelligence, and genetic heritability.

Genetic Factors

Genetic factors involve the roles that genes play in determining physical and psychological traits, including susceptibility to certain diseases or conditions.

IQ

A measure of a person's intelligence as indicated by an intelligence test, reflecting cognitive abilities relative to the average for one's age.