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

question 45

Multiple Choice

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

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

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Definitions:

Conservationist

An individual or a group actively involved in the protection and preservation of nature and wildlife, often advocating for sustainable practices to protect the environment.

Ethical Grounds

The moral principles or considerations that guide behavior or decision-making processes.

Whales

Large marine mammals belonging to the order Cetacea, known for their intelligence and complex behaviors.

Marine Fish Species

Aquatic species that live predominantly in oceanic and sea environments.