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.

Question

Quizplus · Accepted Answer

The control assertion of completeness in the area of work-in-process inventory relates to ensuring that all materials used and costs incurred during the production process are captured and recorded accurately. To test this assertion, the auditor would select a sample of issue slips from the raw materials stores file and trace them to production cost reports to ensure that all materials used have been recorded. This procedure would help to ensure the completeness of the work-in-process inventory. Option A relates to testing the accuracy assertion, option C relates to testing the assertion of accuracy or valuation, and option D relates to testing the authorization assertion.

To Test the Control Assertion of Completeness in the Area