have listed two audit procedures. For each procedure, say:

1. Whichof the various management assertions the testmost directlyaddresses. (If you believe the test equally addresses more than one assertion, say why. Don't list four or five assertions - I'll assume you can't tell which is which.....)
2. Howdoes this test address that assertion?

(You need to address BOTH procedures for a full answer)

Inventory

Procedure #1 - The auditor obtains a copy of the year-end inventory listing. For a sample of the items on the list, the auditor checks to see that the client has computed the FIFO cost correctly.

Procedure #2 - The auditor asks the client if there were any inventory items in transit to the client's location on the last day of the year under terms FOB shipping point. (the client would own these goods while they were in transit.)