Direct observation and inspection of inventory provides the most reliable, firsthand evidence of errors in the quantities of items received from suppliers by physically verifying actual goods versus expected quantities.
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.
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.
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