In Performing Audit Tests of the Client's Cost Accounting System

question 106

Multiple Choice

In performing audit tests of the client's cost accounting system, the auditor is primarily concerned with which of the following?

• A) System is functioning properly in providing costing and pricing information for management.
• B) Costs have been properly assigned to finished goods, work-in-process, and cost of goods sold.
• C) Inventory counts agree with the client's accounting records.
• D) The client's cost accounting system is designed on the basis on acceptable cost accounting systems.

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