When Labour Is a Material Factor in Inventory Valuation, the Auditor

question 43

Multiple Choice

When labour is a material factor in inventory valuation, the auditor should place special emphasis on testing the internal controls concerning:

• A) proper classification of transactions.
• B) authorisation of wage rates.
• C) fictitious employees.
• D) completeness of recorded transactions.

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Definitions:

Work Engagement

The level of commitment, passion, and energy that an employee brings to their job role.

Workers Engaged

Employees who are emotionally and intellectually committed to their organization and its goals, often resulting in higher productivity and job satisfaction.

Psychological Capital

An individual’s positive psychological state of development characterized by self-efficacy, optimism, hope, and resilience.

Stable Personality Trait

A stable personality trait is a characteristic of an individual that remains consistent over time and across different situations.