An audit engagement objective at a manufacturer is to determine the quality of raw materials purchased. Which of the following actions would best enable an internal auditor to satisfy this objective?
An audit engagement objective at a manufacturer is to determine the quality of raw materials purchased. Which of the following actions would best enable an internal auditor to satisfy this objective?
To determine the quality of raw materials purchased, evaluating the volume and characteristics of products rejected during processing is the most effective action. Analyzing rejected products can directly reveal whether the raw materials met the required standards, as any defects or issues would likely surface during the processing stage. This method provides clear and detailed information on the quality of the raw materials used in production.
scrap is generated due to the inefficiency or error in the production but D referring to the products (raw mat) during processing.
Please explain why not B ?
would for the same
B is about scrap , which is a small piece or amount of something, especially one that is left over after the greater part has been used so can't achieve the objective by analysis of scrap, but by the rejected products.