Described below are potential financial statement misstatements that are encountered by auditors in the audit of inventory and cost of goods sold.

Required:

For each misstatement, identify the substantive auditing procedures that may be used by auditors to detect the misstatement.

a$.$ Management of a chain of discount department stores systematically overstates inventory quantities at selected locations.

Audit Procedures $1.$

Audit Procedures $2$

b$.$ Accounting personnel of a manufacturing company make computational errors that understate the production costs of certain inventory items.

Audit Procedure $1.$

Audit Procedure $2.$

c$.$ Management of a computer reseller overstates inventory value by failing to recognize the loss in value of certain inventory items that are obsolete.

Audit Procedure $1.$

Audit Procedure $2.$

d$.$ Production personnel for a high$-$tech manufacturing company include in inventory items that failed to meet essential quality

Described below are potential financial statement misstatements that are encountered by auditors in the audit of inventory and cost of goods sold.

Required:

For each misstatement, identify the substantive auditing procedures that may be used by auditors to detect the misstatement.

a$.$ Management of a chain of discount department stores systematically overstates inventory quantities at selected locations.

Audit Procedures $1.$

Audit Procedures $2$

b$.$ Accounting personnel of a manufacturing company make computational errors that understate the production costs of certain inventory items.

Audit Procedure $1.$

Audit Procedure $2.$standards.

Audit Procedure $1.$

Audit Procedure $2.$