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

As work-in-process inventory consists of the costs of partially completed products that are still in production, the auditor needs to ensure that all materials used in production have been properly recorded to accurately reflect the cost of the inventory. Selecting a sample of issue slips from raw materials stores and tracing them to production cost reports would help ensure that all material usage has been captured, supporting the completeness assertion. Option A relates to testing accuracy, option C involves testing overhead expenses, and option D relates to testing authorization.

To Test the Control Assertion of Completeness in the Area