Which one of the following is NOT an element of the audit of the inventory and warehousing cycle?
A) Review timekeeping procedures for manufacturing employees.
B) Physically observe inventory.
C) Check how goods are shipped and revenue and costs are recorded.
D) Price and compile inventory.

Question

Quizplus · Accepted Answer

Reviewing timekeeping procedures for manufacturing employees is not directly related to the inventory and warehousing cycle, and therefore not an element of the audit of this cycle. B, C, and D are all key elements of the audit of the inventory and warehousing cycle, as physically observing inventory, checking shipping and recording procedures, and pricing and compiling inventory are all important steps in ensuring accurate financial reporting for this cycle.

Which One of the Following Is NOT an Element of the Audit