The following are routine procedures for auditors of the supply chain management and production processes to perform. For each procedure, state whether it is a test of controls or a substantive test of transactions, state which management assertion the procedure is designed to fulfill, and state the type of evidence used in the procedure.

a. Observe how employees gain access to the warehouse.

b. Trace the entries on a batch of job-costing documents to the appropriate journals.

c. Review receiving documents for evidence of inventory held on-site for other entities.

d. Review the receiving and shipping documents for goods transferred in or out of finished goods inventory around the end of the fiscal period. Examine the shipping terms carefully (e.g., FOB Destination).

e. Enter phony product identification codes into the inventory master file server and observe what happens.

f. Trace a sample of the entries in the control account journals to the general ledger.

g. Select a sample of batch cards (e.g., number of boxes, number of items per box, totals) from the internally taken inventory and check them for accuracy.

h. Examine actual costs incurred to standard costs applied throughout the cost accounting system.