An Auditor Concluded That No Excessive Costs for Idle Plant

question 769

Multiple Choice

An auditor concluded that no excessive costs for idle plant were charged to inventory. This conclusion most likely related to the auditor's objective to obtain evidence about the financial statement assertions regarding inventory, including understandability and classification, and:

• A) Valuation and allocation.
• B) Completeness.
• C) Existence.
• D) Rights and obligations.

---

Definitions:

Terms

Conditions and stipulations that are part of an agreement or contract.

Terms

Conditions and agreements under which a service, sale, or transaction is conducted.

Invoices

Documents issued by a seller to a buyer, detailing a transaction and requesting payment.

Terms

Conditions and stipulations under which agreements or contracts are made, including payment deadlines, interest rates, and duties of each party.