Question: Following are audit procedures commonly performed in the inventory and warehousing cycle for a manufacturing company.

1.Compare the client's count of physical inventory at an interim date with the perpetual inventory master file.

2.Trace the auditor's test counts recorded in the working papers to the final inventory compilation and compare tag number, description and quantity.

3.Compare the unit price on the final inventory summary with vendors' invoices.

4.Read the client's physical inventory instructions and observe whether they are being followed by those responsible for counting the inventory.

5.Account for a sequence of raw materials requisitions and examine each requisition for an authorised approval.

6.Trace the recorded additions on the finished goods perpetual inventory master file to the records for completed production.

7.Account for a sequence of inventory tags, and trace each tag to the physical inventory to make sure it actually exists.

Required:

(a)Identify whether each procedure is primarily a test of control or a substantive test.

(7 marks)

State the purpose(s) of each procedure identifying the relevant audit assertions being considered. (14 marks)