The auditor tests the quantity of materials charged to work-in-process by tracing these quantities to:
A) perpetual inventory records.
B) cost ledgers.
C) material requisition forms.
D) receiving reports.

Question

Quizplus · Accepted Answer

Material requisition forms are used to record the quantity of materials needed for a particular job and are used to charge these quantities to work-in-process. Hence, the auditor can test the quantity of materials charged to work-in-process by tracing these quantities to material requisition forms. The other options listed may provide useful information, but they may not necessarily be directly related to the quantity of materials charged to work-in-process.

The Auditor Tests the Quantity of Materials Charged to Work-In-Process