Question

The audit objective “Recorded inventory quantities include no fraudulent products” is related to which Audit procedure?
a. Select a sample of recorded items on count sheets during the physical inventory count and determine that items are on hand.
b. Select a sample of recorded items and examine supporting vendors’ invoices and contracts.
c. Select a sample of items during the physical inventory count and determine that they have been included on count sheets
d. Examine current vendor’s price lists.
f. Review drafts of the financial statement.

The audit objective “Recorded inventory quantities include no fraudulent products” is related to which Financial Statement Assertion:
a. Existence or occurrence
b. Completeness   
c. Rights and obligations
d. Presentation and disclosure
e. Valuation or allocation

Answer 1

The audit objective “Recorded inventory quantities include no fraudulent products” is related to the Audit procedure: "Select a sample of items during the physical inventory count and determine that they have been included on count sheets."

Answer is c. Select a sample of items during the physical inventory count and determine that they have been included on count sheets

The audit objective “Recorded inventory quantities include no fraudulent products” is related to Financial Statement Assertion: "Completeness"

Answer is b. Completeness