1. Q.1. Please briefly describe:
1. The 5 components of IC framework and 8 components of ERM framework developed by COSO
2. The purpose of each framework and the relationship between the two

Q.2.

Auditors are auditing the warehouse of Huge Lots Corporation. The auditors performed the audit procedures listed 1 5. For each audit procedure select the PCAOB management assertion that is most likely being tested(10 points). A. Existence B. Rights and obligations C. Completeness D. Presentation and disclosure (Accuracy) E. Valuation

______ 1. The auditors walked through the warehouse looking for obsolete inventory ______ 2. The auditors compared invoices received from suppliers with the cost of inventory listed in the inventory accounts. ______ 3. The auditors reviewed purchase orders to determine if any inventory was on consignment. ______ 4. The auditors reviewed vendor invoices to determine if freight costs, taxes, tariffs or other costs had been included in inventory costs ______ 5. The auditors selected items from the inventory and reviewed inventory records to ensure these items were included in those records.