When testing a standard cost system,the auditor does not normally make which of the following inquiries?
A)The method for developing standard costs.
B)The method for identifying components of overhead and of allocating overhead to products.
C)The method for identifying sales cutoff.
D)The method used for allocating variances to inventory and cost of goods sold.

Question

Quizplus · Accepted Answer

Sales cutoff is not directly related to the standard cost system and is therefore not typically a focus of the auditor's inquiries in relation to that system. The other answer choices are all relevant to understanding and testing the standard cost system.

When Testing a Standard Cost System,the Auditor Does Not Normally