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 help the auditor assess the effectiveness of the client's controls to ensure that only authorized raw materials are issued for production. Options A, B, and C relate to other areas of audit testing and are not specifically relevant to tests of controls over the issuance of raw materials to production.

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