Which of the following best describes the reason for the auditors' review of the client's cost accounting system?
A)To obtain evidence regarding the quantities of good described as work in process.
B)To obtain evidence about the valuation of work in process,finished goods,and cost of goods sold.
C)To obtain evidence about the profit margin on specific jobs.
D)To obtain evidence about compliance with Cost Accounting Standards.

Question

Quizplus · Accepted Answer

Auditors review a client's cost accounting system primarily to obtain evidence about the valuation of work in process, finished goods, and cost of goods sold. This helps ensure that the financial statements accurately reflect the company's financial position regarding inventory and cost of sales.

Which of the Following Best Describes the Reason for the Auditors