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Running head: HOMEWORK -ACCOUNTINGHomework-AccountingNameInstitution1HOMEWORK ACCOUNTING2Homework -Accounting1. Is a detailed perpetual inventory master file maintained for raw materials inventory?The purpose is to ensure accuracy, completeness and existence of records. The test ofcontrol to be used will be a numerical sequence that identifies matching invoices from differentvendors. The potential mismanagement practice will involve understating good that have beenreceived in the organization by different supplies (Horngren, et al., 2002). The audit procedureutilized will involve identifying different quantities and description of the vendors report.2. Are physical inventory counts made by someone other than storekeepers and thoseresponsible for maintaining the perpetual inventory master file?The inventory is only written or made by the storekeeper. In this case there would be noneed for test controls. Potential mismanagement practices will involve failure to record allproducts in the inventory book. This process can be remediated by an audit of all products sold3. Is the clerical accuracy of the final inventory compilation checked by a personindependent of those responsible for preparing it?Yes the clerical accuracy is checked to ensure accuracy. The test control is merging of thesupplies books to what the clerical inventory books. Potential, mismanagement practices includelack of the clerical officer to record all inventory products (Horngren, e ...


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