An auditor discovered the following matters while performing tests of controls: 2.A purchase of raw materials was recorded as a purchase of supplies. Required: a.What control would have prevented or detected each of the above misstatements? b.What test should the auditor perform to test the control? c.To which financial statement assertion does the misstatement relate?

Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter6: Audit Evidence
Section: Chapter Questions
Problem 7CYBK
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An auditor discovered the following matters while performing tests of controls:

2.A purchase of raw materials was recorded as a purchase of supplies.

Required:

a.What control would have prevented or detected each of the above misstatements?

b.What test should the auditor perform to test the control?

c.To which financial statement assertion does the misstatement relate?

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