To Test the Control Assertion of Completeness in the Area

question 57

Multiple Choice

To test the control assertion of completeness in the area of work-in-process inventory, the auditor most likely would

• A)select a sample of open and closed production cost reports and recalculate all costs entered.
• B)select a sample of issue slips from the raw materials stores file and trace materials-used reports to production cost reports.
• C)select a sample of open and closed production cost reports and vouch overhead charges to overhead analysis schedules.
• D)select a sample of production orders and determine whether the production orders were authorized.

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Definitions:

GATT

The General Agreement on Tariffs and Trade, a legal agreement between many countries aimed at promoting international trade by reducing or eliminating trade barriers such as tariffs or quotas.

Lack Of Care

A failure to act with the attention or caution that a reasonable or prudent person would under similar circumstances, often leading to negligence claims.

Corporate Officers

Senior executives or top managers within a corporation who are given authority by the board of directors to manage the day-to-day operations and make significant business decisions.

Directors

Members of a company's board responsible for making major policy and financial decisions, acting collectively in the best interests of the company and its shareholders.