QUESTION 1

What is the initial thing an auditor should do when observing an auditee's inventory?

a.Walk around the premises to do a completeness reasonability check

b.Review instructions for inventory taking

c.Determine that the auditee has sufficient number of people counting inventory

d.Conduct sample selection

QUESTION 2

Which report provides evidence over unaccrued liabilities for purchases?

a.Unmatched receiving reports

b.Unmatched supplier invoices

c.AP trial balance

d.a) and b)

QUESTION 3

When should purchases be recorded?

a.When disbursements are recorded

b.When the PO, receiving report and invoice are matched

c.When the purchase is made

d.a) and b)