Assignment
Instructions
The auditor determines that each of the following objectives will be part of your audit of Bozington, Co., Inc. For each audit objective, select a substantive procedure that would help to achieve that objective. Each of the procedures may be used once, more than once, or not at all.
Audit Objective
o Establish the completeness of inventories.
o Establish the accuracy of cost amounts of inventories.
o Determine that the presentation and disclosure of inventories and cost of goods sold is adequate.
o Establish that the client has rights to the recorded inventories.
o Establish the existence of ending inventory.
Substantive procedures
o Examine current vendors' price lists.
o Review drafts of the financial statements.
o Select a sample of items during the physical inventory count and determine that they have been included on count sheets.
o Select a sample of recorded items and examine supporting vendors' invoices and contracts.
o Select a sample of recorded items on count sheets during the physical inventory count and determine that items are on hand.
o Test the reasonableness of general and administrative labor rates.
Format your assignment according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.