When an Auditor Tests an Entity's Cost Accounting System, the Auditor's

question 66

Multiple Choice

When an auditor tests an entity's cost accounting system, the auditor's tests 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 are in substantial agreement 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 work in process, finished goods, and cost of goods sold.

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Definitions:

Stressful Thoughts

Thoughts or ideas that induce a state of stress, worry, or anxiety, often concerning future events or outcomes.

Hostility

It refers to feelings of anger, antagonism, or opposition towards others or situations.

Anger

An emotional response characterized by antagonism toward someone or something you feel has deliberately done you wrong.

Frustration

An emotional response experienced when something interferes with one's path to achieve a goal or fulfill a need.