Multiple Choice
Depending on the controls in the cost accounting system,the auditor may choose
A) to verify raw materials by reviewing purchase orders for raw materials
B) to verify raw materials by reviewing purchase invoices for raw materials
C) to verify direct labor by reviewing department records for direct labor costs
D) to verify direct labor by reviewing payroll budgets for direct labor costs
E) to verify direct labor by reviewing payroll records for direct labor costs
F) both A and C
G) both B and D
H) Both B and E
Correct Answer:

Verified
Correct Answer:
Verified
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Q62: How does the auditor gather evidence during
Q63: Inventory is recorded at cost when purchased.The
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Q65: The accounting rule,"lower of cost or market,"
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Q68: Substantive audit procedures in the inventory process
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Q71: The inventory physical count gives the company