If controls over production accounting are found to be strong, an auditor can plan to do less testing at year 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

If controls over production accounting are strong, it suggests that the processes related to costing and valuing inventory are reliable, allowing the auditor to reduce testing on the valuation assertion of inventory.

If Controls Over Production Accounting Are Found to Be Strong