As part of the current audit, the auditor begins performing substantive tests on a client’s inventory. To test the valuation, allocation, and accuracy assertion, the audi- tor should perform all of the following procedures except for:reviewing direct labor rates and testing the computation of the standard over- head rates used.
The following questions deal with internal controls in the inventory and warehousing cycle and tests of details of balances for inventory. Choose the best response. © 2018 DeVry/Becker Educational Development Corp. Used with permission. All rights reserved. Chapter 21 / AUDIT OF THE INVENTORY AND WAREHOUSING CYCLE 721 a. Alpha Company uses its sales invoices […]