1. Explain the relationship between the acquisition and payment cycle and the inventory and warehousing cycle in the audit of a manufacturing company.
2. List several audit procedures in the acquisition and payment cycle that support your explanation.
3. Class, let’s start with the raw materials, what are some of the risks from the auditor’s perspective for the raw materials being purchased for production purposes? Should we be concerned how the client is valuing the raw materials being purchased and how these valued materials are entering the production cycle?
Response should be in own words with a minimum of 90 words per question