3)Which of the following audit procedures is a test of control?a.Management providing written instruction to all employees and supervising the monthly inventory stocktake.b.Observing employee compliance with stocktake procedures.c.Picking a sample of goods received notes and ensuring the correct date is recorded in the purchase’s ledger.d.Estimating total sales for a specific product line for the year and comparing actual sales.

The audit is the process of the official inspection of the books of accounts of a company. There are…

Answered: Which of the following audit procedures…

Business

Accounting

Which of the following audit procedures is a test of control?

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

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 32CYBK

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Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

Question

Which of the following audit procedures is a test of control?

Management providing written instruction to all employees and supervising the monthly inventory stocktake.

Observing employee compliance with stocktake procedures.

Picking a sample of goods received notes and ensuring the correct date is recorded in the purchase’s ledger.

Estimating total sales for a specific product line for the year and comparing actual sales.

Definition Definition Methods and techniques used by the auditor to gather the appropriate evidence so that a true and fair judgment can be made on the quality of the financial statements of the client. Audit procedures are developed after determining audit objectives, scope, approach, and risk assessment.

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Audit procedures for items of Financial Statement

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