Which of the following would provide the best evidence of errors in the quantities of items received from suppliers?
Which of the following would provide the best evidence of errors in the quantities of items received from suppliers?
The best evidence of errors in the quantities of items received from suppliers would be warehouse receiving logs. These logs are maintained by the warehouse personnel and detail exactly what quantities were received at the time of delivery. This real-time documentation is crucial for identifying discrepancies between what was ordered and what was delivered, providing a clear record to audit for any errors.
Why not D? Independent check by auditor?
Because the warehouse receiving log will contain only the items which are actually received from supplier as he get the purchase order without quantities, this will be the best evidence of errors in quantities received from suppliers.
Independent control (e.g. at the year end) by an auditor will show the actual quantity, which may also have been falsified. The best evidence of quantities is the one that has been recorded at the time of receipt in the warehouse.