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.

---

Definitions:

Helicopter

A helicopter is an aircraft that is lifted and propelled by one or more horizontal rotors, capable of vertical takeoff, landing, and hovering in place.

Breach Of Contract

Not meeting any obligation of a contract, either in writing or spoken, without a justifiable legal justification.

Legal Action

A process of taking a dispute to a law court to obtain a legal judgment.

Tender

The act of performing a contract or the offer of payment of money due under a contract.