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Audit evidence An audit associate is preparing an audit program for the audit of a client's inventory purchases transactions. To gather evidence in support of
Audit evidenceAn audit associate is preparing an audit program for the audit of a client's inventory purchases transactions. To gather evidence in support of the cutoff assertion, the associate included the following audit procedure in the audit program:
Select a sample of receiving reports in the warehouse for three days before and after year-end and inspect related journal entries in inventory/accounts payable to determine that purchases were recorded in the proper period.
Required
- a.Evaluate the relevance of the procedure in addressing the cutoff assertion.
- b.Comment on the reliability of the evidence gathered using the procedure.
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