Question 1
Auditor tests of physical controls over raw materials, work-in-process, and finished goods are performed by
◦
Examination | Observation | Inquiry |
Yes | No | Yes |
◦
Examination | Observation | Inquiry |
No | Yes | No |
◦
Examination | Observation | Inquiry |
Yes | Yes | No |
◦
Examination | Observation | Inquiry |
No | Yes | Yes |
Question 2
Auditor tests of the physical controls over raw materials, work in process, and finished goods are generally limited to
◦ observation and confirmation.
◦ observation and inquiry.
◦ inquiry and reconciliation.
◦ observation and reconciliation.