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Purchase cutoff procedures test the completeness assertion. should include goods in its inventory if it: (a) Has sold the goods. (b) Has paid for the goods. (c) Holds legal title to the goods. (d) Has physical possession of the goods. A company 13. 14. Effective controls relevant to the purchase of raw materials should usually include all of the following except: (a) Determining the need for the raw materials prior to preparing the (b) (c) (d) purchase order Obtaining approval to purchase prior to placing an order for the materials. Obtaining third party written statements concerning quality and quantity of materials prior to payment for the raw materials. Systematic reporting of product changes that will affect raw materials. 15. An auditor's objective is to determine that nonrecurring purchases, initiated by various user departments, have been properly authorized. If all purchases are made through the purchasing department, to which of the following documents would you vouch purchases? (a) Invoices. (b) Purchase requisitions. (c) Receiving reports. (d) Purchase orders. 16. In verifying debits to perpetual inventory records of a nonmanufacturing firm, the auditor is most interested in examining the purchase: (a) Orders. (b) Invoices. (c) Journal. (d) Requisitions. 17. Which of the following audit procedures would provide the auditor with the most assurance concerning the existence of inventories? (a) Confirmation of inventories held in a public warehouse. (b) The auditor's recalculation of inventory extensions. (c) Observation of the physical inventory count. (d) Written representations from management concerning inventory

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