Multiple Choice
Which of the following statements is correct regarding the audit of inventory cost accounting?
A) Cost accounting systems and controls are the same for all manufacturing companies.
B) All companies that have work-in-process must use a perpetual inventory system.
C) Auditors test perpetual inventory master files by examining documentation that supports additions and reductions of inventory amounts in the master files.
D) Manufacturing companies keep their cost accounting records separate from the production and other accounting records.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: Master files, spreadsheets, and reports that accumulate
Q15: When auditing manufacturing overhead costs assigned to
Q16: Audit procedures verifying the costs used to
Q17: Receipt of ordered materials by the receiving
Q18: The extent and timing of an auditor's
Q20: Which of the following is a continuously
Q21: A common inventory observation procedure is to
Q22: A major difficulty in the verification of
Q23: The receipt of raw materials is a
Q24: When an auditor observes that personnel who