In a Manufacturing Company, Which One of the Following Audit

question 4

Multiple Choice

In a manufacturing company, which one of the following audit procedures would give the least assurance with regards to the valuation and allocation assertion for inventory?

• A) Examining paid vendors' invoices.
• B) Testing the computation of standard overhead rates.
• C) Obtaining confirmation of inventories pledged under loan agreements.
• D) Reviewing direct labour rates.

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Definitions:

Unlimited Capacity

A hypothetical concept suggesting that there's no upper limit to the amount of information the human brain can store.

Decades

Periods of ten years, often used to mark significant time intervals in history, research, and life events.

Episodic Memory

The type of long-term memory that involves the recollection of specific events, situations, and experiences, including the context and emotions associated with them.

Events

Occurrences or happenings, especially those significant enough to be remembered or noteworthy.