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Cost and Authorization - Detailed audit of stock
Cost
A favor of the auditor this is restricted generally to determining the technique adopted through the organization in pricing stocks. The auditor weighs the appropriateness and acceptability of the policies adopted. Well the rest of the exercise is a mechanical exercise of testing to confirm about the technique adopted have been properly applied.
Authorization
Therefore the purchases cycle creates stocks, audit work of compliance tests, logical reviews and substantive tests in the area of buys rarely provide the auditor along with adequate evidence as just to authorization technique in obtaining stocks.
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