Tests of Controls Related to Controls and Assertions Each of
Tests of Controls Related to Controls and Assertions. Each of the following tests of controls could be performed during the audit of the controls in the production cycle.

For each procedure, identify
(a) The internal control activity (strength) being tested and
(b) The assertion(s) being addressed.
1. Balance and reconcile detailed production cost sheets to the work- in- process inventory control account.
2. Scan closed production cost sheets for missing numbers in the sequence.
3. Vouch a sample of open and closed production cost sheet entries to
(a) Labor reports and
(b) Issue forms and materials used reports.
4. Locate the material issue forms and determine whether they are (a) prenumbered, (b) kept in a secure location, and (c) available to unauthorized persons.
5. Select several summary journal entries in the work- in- process inventory and
(a) Vouch them to weekly labor and material reports and to production cost sheets and
(b) Trace them to the control account.
6. Select a sample of the material issue forms in the production department file. Examine them for a. Issue date and materials used report date. b. Production order number. c. Floor supervisor’s signature or initials. d. Name and number of material. e. Raw materials stores clerk’s signature or initials. f. Material requisition in raw materials stores file, noting the date of requisition.
7. Determine by inquiry and inspection whether cost clerks review dates on reports of units completed for accounting in the proper period.

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