An auditor concluded that no excessive costs for idle plant were charged to inventory.This conclusion most likely related to the auditor's objective to obtain evidence about the financial statement assertions regarding inventory,including presentation and disclosure and
A) Valuation and allocation.
B) Completeness.
C) Existence.
D) Rights and obligations.

Question

Quizplus · Accepted Answer

The assertion of valuation and allocation is relevant in determining whether inventory is stated at the appropriate value on the financial statements. In this case, the auditor's conclusion that no excessive costs for idle plant were charged to inventory provides evidence that inventory was fairly valued and that costs were appropriately allocated.

An Auditor Concluded That No Excessive Costs for Idle Plant