An auditor concluded that no excessive costs for an 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 auditor's objective in obtaining evidence about financial statement assertions regarding inventory includes valuation and allocation, which would involve ensuring that no excessive costs for an idle plant were charged to inventory. The other assertions (completeness, existence, and rights and obligations) would focus on different aspects of inventory, such as ensuring that all inventory is recorded, physically exists, and belongs to the company, respectively.

An Auditor Concluded That No Excessive Costs for an Idle