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.

Question

Quizplus · Accepted Answer

The auditor's tests of controls over the issuance of raw materials to production would most likely include examining material requisitions and reperforming client controls designed to process and record issuances. This would involve selecting a sample of material requisitions and tracing them back to supporting documentation to ensure that proper controls were followed in the issuance of raw materials to production. Option A involves reconciling inventory records, which is a substantive procedure rather than a test of controls. Option B involves inquiring about procedures related to defective materials, which is not directly relevant to testing controls over the issuance of raw materials to production. Option C involves observing physical security, which is also not directly relevant to testing controls over the issuance of raw materials to production.

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