An auditor discovered the following errors and irregularities while performing tests of controls: 1. Goods received on October 3 were never placed in the storeroom but instead were taken to the receiving clerk’s home. Required: a. What control would have prevented or detected each of the aforementioned errors/irregularities? b. What tests should the auditor perform to test each control? c. To which financial statement assertion does the error or irregularity relate?

An auditor discovered the following errors and irregularities while performing tests of controls: 1. Goods received on October 3 were never placed in the storeroom but instead were taken to the receiving clerk’s home. Required: a. What control would have prevented or detected each of the aforementioned errors/irregularities? b. What tests should the auditor perform to test each control? c. To which financial statement assertion does the error or irregularity relate?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 32CYBK

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An auditor discovered the following errors and irregularities while performing tests of controls: 1. Goods received on january 5 were never placed in the storeroom but instead were taken to the receiving clerk’s home. Required: a. What control would have prevented or detected each of the aforementioned errors/irregularities? b. What tests should the auditor perform to test each control? c. To which financial statement assertion does the error or irregularity relate?
An auditor discovered the following errors and irregularities while performing tests of controls:1. Goods received on June 3 were never placed in the storeroom but instead were taken to the receiving clerk’s home. REQUIRED: a. To which financial statement assertion does each error or irregularity relate? Answer : Rights and obligations - Can someone please explain to me why the answer is rights and obligation for assertion.
An auditor discovered the following errors and irregularities while performing tests of controls: Raw materials issued on October 5 were never recorded as issued from the storeroom. Required: What control would have prevented or detected each of the aforementioned errors/irregularities? What tests should the auditor perform to test each control? To which financial statement assertion does the error or irregularity relate?
An auditor discovered the following matters while performing tests of controls: 2.A purchase of raw materials was recorded as a purchase of supplies. Required: a.What control would have prevented or detected each of the above misstatements? b.What test should the auditor perform to test the control? c.To which financial statement assertion does the misstatement relate?
An auditor discovered the following errors and irregularities while performing tests of controls: Inventory damaged by rain remains in inventory at full cost. Required: What control would have prevented or detected each of the aforementioned errors/irregularities? What tests should the auditor perform to test each control? To which financial statement assertion does the error or irregularity relate?
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