Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 29

Which of the following would provide the best evidence of errors in the quantities of items received from suppliers?

Answer options

• A. Suppliers' reports of over shipments.
• B. Warehouse receiving logs.
• C. Purchase requisitions and purchase orders.
• D. Observation and inspection of inventory.

Correct answer: B

Explanation

Warehouse receiving logs provide a detailed record of all items that have been received, making them the most reliable source for identifying discrepancies in quantities. While suppliers' reports and purchase documents are useful, they do not directly reflect the quantities actually received, and observation alone may not capture all errors.