Auditors are most likely to ensure that no production activity is scheduled prior to
A) Determining standard costs.
B) Observing physical inventory.
C) Completing the book to physical adjustment.
D) Determining the amount of consigned inventory.

Question

Quizplus · Accepted Answer

Auditors are primarily concerned with ensuring the accuracy of physical inventory records. Therefore, observing physical inventory would be the most relevant activity for auditors to ensure that production activity is not scheduled prior to accurate inventory records being available. Choices A, C and D are also important tasks for auditors, but are not directly related to scheduling production activity.

Auditors Are Most Likely to Ensure That No Production Activity