If controls over production accounting are found to be strong,an auditor can plan to do less testing over ________.
A)the existence assertion of inventory
B)the valuation assertion of inventory
C)the completeness assertion of inventory
D)the rights assertion over inventory

Question

Quizplus · Accepted Answer

Strong controls over production accounting would provide assurance over the accuracy and completeness of inventory valuation. Therefore, the auditor can plan to do less testing over the valuation assertion of inventory. However, the existence, completeness, and rights assertion of inventory still require testing regardless of the strength of the production accounting controls.

If Controls Over Production Accounting Are Found to Be Strong,an