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The auditor would like to test the existence and accuracy of the transfer of goods from the raw ...

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The auditor would like to test the existence and accuracy of the transfer of goods from the raw ...

The auditor would like to test the existence and accuracy of the transfer of goods from the raw materials storeroom to the manufacturing assembly lines. Which of the following audit procedures should be used?
A) conduct a variance analysis of the costs associated with manufacturing, looking for gross profit fluctuations
B) account for a sequence of raw material requisitions, examining details and looking for proper approvals
C) look at overtime records to determine the amount and timing of overtime hours used in the manufacturing process
D) inquire of the inventory custodian with respect to procedures used to transfer raw materials to the production line

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Auditing: The Art and Science of Assurance Engagements, Canadian Edition

Edition: 12^th

Authors: Arens, Elder, Beasley, Splettstoesser

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Auditing: The Art and Science of Assurance Engagements, Twelfth Canadian Edition, 12/E (Arens, Elder, Beasley, Splettstoesser)

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