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

question 31

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)authorization of wage rates.
• C)fictitious employees.
• D)completeness of recorded transactions.

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Definitions:

Vertebrae

Vertebrae are the individual bones that make up the vertebral column (backbone) in vertebrates, providing structural support and housing for the spinal cord.

Stratified Squamous

A type of epithelial tissue composed of flat, layered cells that protect underlying tissues in areas subject to abrasion.

Oxygen

A chemical element (O) essential for most life forms on Earth, critical for cellular respiration in animals and photosynthesis in plants.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in the air and is absorbed by plants in photosynthesis.