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Following are audit procedures commonly performed inthe inventory and warehousing cycle for a manufacturing company:1. Compare the client’s count of physical inventory at an interim date with the perpetual inventorymaster file.2. Trace the auditor’s test counts recorded in the audit files to the final inventory compilationand compare the 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 followedby those responsible for counting the inventory.5. Account for a sequence of raw material requisitions and examine each requisition for anauthorized approval.6. Trace the recorded additions on the finished goods perpetual inventory master file to therecords for completed production.7. Account for a sequence of inventory tags and trace each tag to the physical inventory to makesure it actually exists.a. Identify whether each of the procedures is primarily a test of control or a substantive test.b. State the purpose(s) of each of the procedures.
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