1. In testing management's rights and obligations assertion in relation to inventories, which of the following procedures would the auditor most likely consider most reliable?
a. Make inquiries and analyze inventory turnover to identify slow-moving or obsolete items. b. Vouch inventory counts to accounting records. c. Review consignment agreements. d. Trace inventory in accounting records to inventory counts.
2. Analyze your current place of employment or school and determine the most likely sources of fraud. Provide specific examples to support your response.