申論題

三、
Following are some audit procedures commonly performed in the inventory and warehousing cycle
for a manufacturing company:
Required:
a. What are the key control procedures should be maintained by clients while performing physical
count of inventory? Please explain.
b. Identify whether each of the above audit procedures (1 through 4) is primarily a test of control
or a substantive test.
c. State the purpose(s) (balance-related audit objectives) of each of the procedures.

2. Use audit software to compute inventory turnover by major product line and compare it to turnover in the prior year.