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Question:
Shown below are errors and fraud that could affect the fairness of the client's financial statement balance for inventory. For each shown a substantive procedure performed by the auditors to test for the occurence of the error or fraud.
a. The client added items to the completed physical inventory that were not on hand at the time of the physical inventory. ?
b. The client valued certain inventory items at their current replancement cost, rather than the item's historical cost.
c. The client failed to add purchased goods in transit in their inventory.
d. The client made major errors in extending inventory quantities by their cost on the completed physical inventory listing.
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