Question

management has contralized purchasing and used model based upon previose years sales with adjastmrnt for trends...

management has contralized purchasing and used model based upon previose years sales with adjastmrnt for trends in the market place (eng the trend to more casual shode) a staff auditors has shhested that the centralized purchasing my be one of the reasons for the lower level of profitablity in the mid central region . what are the best audit procedures to address the staff auditors assertion

Homework Answers

Answer #1

A. Take a sample of receiving documents at stores and trace to purchase orders to determine the length of time between the purchase and delivery of the goods.
B. Interview store managers in the Mid-Central Region to determine their attitude toward centralized purchasing.
C. Perform an inventory count at selected stores in the Mid-Central Region and determine if adjustments are needed to the perpetual records.
D.Perform a product-line analysis of sales and purchases in the Mid-Central Region and compare with other regions.

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