EP 13-9 WIP Inventory , Tests of Control . Assume that an auditor finds the following errors while performing tests of controls for WIP inventory in custom machinery manufacturing business . Required : lower than actual labour For each finding , state which control objective is affected . what control deficiency is indicated , and what further inves tigation (if any ) should be undertaken by the auditor . a . Budgeted labour hours are 30\% costs and production cost reports . b . Of 20 time -clock entries examined for July 14 , three do not appear on the daily labour report or production cost report for that day c. Weekly labour cost reports do not agree with the weekly payroll summary d . The open production report used to cost WIP inventory contains costs of materials for which no matching amount and description are found on the materials used reports and no material issue slip is on file in the material storage department .