When Testing a Company's Cost Accounting System,the Auditor Uses Procedures

question 6

Multiple Choice

When testing a company's cost accounting system,the auditor uses procedures that are primarily designed to determine that

• A)Quantities on hand have been computed based on acceptable cost accounting techniques that reasonably approximate actual quantities on hand.
• B)Physical inventories agree substantially with book inventories.
• C)The system is in accordance with generally accepted accounting principles and is functioning as planned.
• D)Costs have been properly assigned to finished goods,work-in-process,and cost of goods sold.

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Definitions:

Blindness

The state or condition of being unable to see due to injury, disease, or a congenital condition.

Paralysis

The loss of the ability to move (and sometimes to feel anything) in part or most of the body, typically as a result of illness, poison, or injury.

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Hypochondriasis

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