_^12-30

_{^{Adapted AICPA Task-Based Simulation}}

_{^{During year 1 audit of Cellenting Co., the auditor performed various procedures relating to inventory. Match each of the following procedures with the description below:}}

_{^{Audit procedures}}

_{^{Analytical procedure}}

_{^{External confirmation}}

_^Inquiry

_{^{Inspection of records or documents}}

_{^{Inspection of tangible assets}}

_^Observation

_{^{Recalculation}}

_{^{Reperformance}}

_{^{(Each audit procedure may be used once, more than once, or not at all.)}}

Description of Audit Procedures Performed	Type of Audit Procedure
a. During the physical inventory count, the auditor asked the client to open various boxes of inventory items so she was able to assess the quality of the item.
b. During a site visit to a construction site, the auditor determined that all employees were wearing proper safety equipment.
c. The auditor asked the warehouse manager about whether certain inventory items were becoming obsolete.
d. The auditor obtained a purchase order from the purchase order file and compared it to the authorized Supplier list to determine that the related goods had been purchased from an approved supplier.
e. The auditor calculated the accounts receivable turnover for the year.
f. The auditor obtained a copy of the company's accounting manual and read the section on inventory to prepare for the physical inventory observation.
g. The auditing firm's computer assisted audit specialist obtained an electronic i nventory file from the company and checked the accuracy of the extensions and footings.