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:

Federal Government

The national government of a federation, responsible for governing the entire country and managing issues of national interest.

Constitution

The fundamental principles or established precedents that govern a state, organization, or other entity.

Judicial Review

The power of courts to assess the constitutionality of laws or governmental actions and to override those found to be unconstitutional.

Constitution

A system of fundamental principles or established precedents according to which a state or other organization is governed.