The lolowingSdlements are incuded in the inventory and related records of Westbox Manufacturing Company (Click the icon to view the misslatements) Requirements a. For each misstatement, state an internal control that should have prevented it from occurring b. For each misstatement, state a substantive audit procedure that can be used to uncover it Control that should have prevented the misstatement from occurrin Misstatement st and then continue to the next question The clerk in charge of the perpetual inventory master file altered the quantity on an inventory tag to cover up the shortage of inventory caused by its theft during the year. After the auditor left the premises, several inventory tags were lost and were not included in the final inventory summary When raw material acquisitions were recorded, the improper unit price was included in the perpetual inventory master file. Therefore, the inventory valuation was misstated because the physical inventory was priced by referring to the perpetual records. 1. trol that shou audit procedu 2. 3. 4. During the physical count, several obsolete inventory items were indluded. 5. Because of a significant increase in volume during the current year and excellent control over manufacturing overhead costs, the manufacturing overhead rate applied to inventory was far greater than actual cost An inventory item was priced at $12 each instead of at the correct cost of $12 per dozen 6. 7. In taking the physical inventory, the last shipments for the day were excluded from inventory and were not included as a sale until the subsequent year to the next Print Done b. For each misstatement, state a substantive audit procedure that can be used to uncover it. Substantive audit procedure that could be used to uncover the misstatement Misstatement Choose from any drop-down list and then continue to the next question 0 Account for all prenumbered tags during the physical examination and during compilation tests B Compare vendor invoice prices to perpetual inventory prices Examine bills of lading for first shipments recorded after the physical inventory to detemine that they were shipped after year-end A udit pr D Examine vendors' invoices in support of prices used E Perfom net realizable value and lower of cost or market tests of inventory induding tests of the perpetual inventory F Record test counts and trace to compiled inventory G Test reasonableness of manufacturing overhead rate Print Done The lolowingSdlements are incuded in the inventory and related records of Westbox Manufacturing Company (Click the icon to view the misslatements) Requirements a. For each misstatement, state an internal control that should have prevented it from occurring b. For each misstatement, state a substantive audit procedure that can be used to uncover it Control that should have prevented the misstatement from occurrin Misstatement st and then continue to the next question The clerk in charge of the perpetual inventory master file altered the quantity on an inventory tag to cover up the shortage of inventory caused by its theft during the year. After the auditor left the premises, several inventory tags were lost and were not included in the final inventory summary When raw material acquisitions were recorded, the improper unit price was included in the perpetual inventory master file. Therefore, the inventory valuation was misstated because the physical inventory was priced by referring to the perpetual records. 1. trol that shou audit procedu 2. 3. 4. During the physical count, several obsolete inventory items were indluded. 5. Because of a significant increase in volume during the current year and excellent control over manufacturing overhead costs, the manufacturing overhead rate applied to inventory was far greater than actual cost An inventory item was priced at $12 each instead of at the correct cost of $12 per dozen 6. 7. In taking the physical inventory, the last shipments for the day were excluded from inventory and were not included as a sale until the subsequent year to the next Print Done b. For each misstatement, state a substantive audit procedure that can be used to uncover it. Substantive audit procedure that could be used to uncover the misstatement Misstatement Choose from any drop-down list and then continue to the next question 0 Account for all prenumbered tags during the physical examination and during compilation tests B Compare vendor invoice prices to perpetual inventory prices Examine bills of lading for first shipments recorded after the physical inventory to detemine that they were shipped after year-end A udit pr D Examine vendors' invoices in support of prices used E Perfom net realizable value and lower of cost or market tests of inventory induding tests of the perpetual inventory F Record test counts and trace to compiled inventory G Test reasonableness of manufacturing overhead rate Print Done