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

question 67

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:

Retrograde Amnesia

A loss of memory for events that occurred before a particular point in time, often due to trauma or disease.

Proactive Interference

The phenomenon by which previously learned information interferes with the recall of new information.

Source-monitoring Error

A type of memory error where a person misidentifies the source of a memory, such as confusing whether an event was experienced or imagined.

Retrieval Cue

A stimulus that allows or aids the recall of information stored in memory.