An Auditor Tests an Entity's Control That Matches Shipping Documents

question 59

Multiple Choice

An auditor tests an entity's control that matches shipping documents to sales invoices before they are recorded in the financial statements as revenue in support of management's financial statement assertion of:

• A)valuation or allocation.
• B)presentation and disclosure.
• C)existence or occurrence.
• D)rights and obligations.

Learn about the complexity of costing in a process that uses different materials for different products but shared labor and overhead costs.

Understand the basic components and purpose of the job order costing system.

Distinguish between job order costing and process cost accounting systems.

Learn how material, labor, and overhead costs are accounted for in job order costing.