Which of the Following Statements Is Correct Regarding the Audit

question 19

Multiple Choice

Which of the following statements is correct regarding the audit of inventory cost accounting?

• A) Cost accounting systems and controls are the same for all manufacturing companies.
• B) All companies that have work-in-process must use a perpetual inventory system.
• C) Auditors test perpetual inventory master files by examining documentation that supports additions and reductions of inventory amounts in the master files.
• D) Manufacturing companies keep their cost accounting records separate from the production and other accounting records.

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Definitions:

Humiliated

The feeling of embarrassment or shame as a result of being made to look foolish or incompetent.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a diagnostic tool used by healthcare professionals in the United States.

Frotteurism

A paraphilic interest in rubbing, usually one's pelvic area, against a non-consenting person for sexual pleasure.

Frotteurist

An individual who achieves sexual arousal by rubbing against non-consenting persons in public places.