Which of the Following Types of Evidence Is Most Appropriate

question 62

Multiple Choice

Which of the following types of evidence is most appropriate in the audit of fixed assets?

• A)recalculation of the amortization schedule provided by the client
• B)auditor inspection of recently acquired fixed assets
• C)reperformance of the posting of depreciation expenses to the general ledger
• D)analytical review to assess the reasonableness of depreciation expense

Understand the basic differences between job order cost systems and process cost systems, including when each is appropriate.

Know the flow of costs in accounting systems, particularly how costs are accumulated and assigned in manufacturing.

Recognize the role and charging mechanism of direct materials, work in process, and finished goods in the cost accounting cycle.

Understand how factory labor costs, including direct and indirect (manufacturing overhead) labor costs, are accounted.

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