Problem

Auditors are auditing the warehouse of Huge Lots Corporation. The auditors performed the a...

Auditors are auditing the warehouse of Huge Lots Corporation. The auditors performed the audit procedures listed in 1-5. For each audit procedure, select the ASB balance assertion that is most likely being tested.

A. Existence.

B. Rights and obligations.

C. Completeness.

D. Accuracy.

E. Valuation.

1. The auditors walked through the warehouse looking for obsolete inventory.

2. The auditors compared invoices received from suppliers with the cost of inventory listed in the inventory accounts.

3. The auditors reviewed purchase orders to determine if any inventory was on consignment.

4. The auditors reviewed vendor invoices to determine if freight costs, taxes, tariffs, or other costs had been included in inventory costs.

5. The auditors selected items from the inventory and reviewed inventory records to ensure these items were included in those records.

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