12. For each audit procedure related to inventory below (1-5), select the type of audit procedure (A-H) that is being performed.You may use each type of audit procedure once, more than once, or not at all.

A - Tangible asset inspection

B - Recalculation

C - Inquiry

D - Confirmation

E - Re-performance

F - Observation

G - Analytical procedures

H - Document and record inspection

Audit Procedure

Assertion

1

Walk through the warehouse looking for obsolete inventory.

2

Review vendor invoices to determine if freight costs, taxes, tariffs, or other costs had been included in inventory costs.

3

Compare invoices received from suppliers with the cost of inventory listed in the inventory accounts.

4

Interview client personnel to determine if any inventory is on consignment.

5

Select items from the inventory listing and ask the client to take the auditor to the area in the warehouse where those items are stored.