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deficiency: The warehouse manager is to assess the level of work?in?progress and raw materials. In the past, a specialist has undertaken this role.
It is unlikely that the warehouse manager has the experience to assess the level of work?in? progress as this is something that the factory manager would be more familiar with.
Work?in?progress may be under or overvalued.
Recommendation: A specialist should be utilised to assess both work?in?progress and the quantities of raw materials.
deficiency: The warehouse manager will also estimate the quantity of raw materials.
He may make a mistake when assessing the quantities.
Inventory could be materially misstated.
Recommendation: With regards to the warehouse manager, he could estimate the raw materials and the specialist could check it. This would give an indication as to whether he is able to accurately assess the quantities for subsequent inventory counts.
ma’am don’t you think the recommendation to both the deficiencies are SPs ?
TOCs and SPs are what the AUDITOR does to obtain sufficient appropriate audit evidence.
Recommendations how the CLIENT should respond to deficiencies should be a control activity or some other component of IC – SEE page 70 of the notes for the 5 components of IC.
You are confusing two completely unrelated topics. You should be able to see that the 2nd recommendation is a control activity (there is a “check” in it).