An auditor's tests of controls over the issuance of raw materials to production would most likely include
a. Reconciling raw materials and work in process perpetual inventory records to general ledger balances.
b. Inquiring of the custodian about the procedures followed when defective materials are received from vendors.
c. Observing that raw materials are stored in secure areas and that storeroom security is supervised by a responsible individual.
d. Examining material requisitions and reperforming client controls designed to process and record issuances.
Answer: D
CPA Exam
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