An Auditor's Tests of Controls Over the Issuance of Raw

question 21

Multiple Choice

An auditor's tests of controls over the issuance of raw materials to production would most likely include

• A)reconciling raw materials and work-in-process perpetual inventory records to general ledger balances.
• B)inquiring of the custodian about the procedures followed when defective materials are received from vendors.
• C)observing that raw materials are stored in secure areas and that storeroom security is supervised by a responsible individual.
• D)examining material requisitions and reperforming client controls designed to process and record issuances.

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Definitions:

Decisional Roles

Refers to the specific responsibilities and duties of managers in making choices and decisions that affect the organization and its stakeholders.

Management Function

Activities involved in the planning, organizing, leading, and controlling of an organization's resources to achieve its objectives.

Fruit Spreads

A food product made by cooking fruit with sugar until it becomes thick, used as a topping or filling.

Organic

can refer to substances derived from living organisms, practices in farming without synthetic chemicals, or structures that develop naturally without strict planning.