To Test the Control Assertion of Completeness in the Area

question 26

Multiple Choice

To test the control assertion of completeness in the area of work-in-process inventory,the auditor most likely would

• A)Select a sample of open and closed production cost reports and recalculate all costs entered.
• B)Select a sample of issue slips from the raw materials stores file and trace materials-used reports to production cost reports.
• C)Select a sample of open and closed production cost reports and vouch overhead charges to overhead analysis schedules.
• D)Select a sample of production orders and determine whether the production orders were authorized.

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Definitions:

Expected Return

The predicted amount of gain or loss an investment is projected to generate, based on historical or anticipated rates of return.

Portfolio

An aggregation of financial holdings that includes stocks, bonds, commodities, cash, cash equivalents, closed-end funds, and exchange traded funds (ETFs).

Systematic Risk

The inherent risk that affects the entire market or a whole segment of the market, often influenced by geopolitical and economic factors.

Portfolio Diversification

An investment strategy used to reduce risk by allocating investments among various financial instruments, industries, and other categories.