Explain how auditing inventory of a company with a standard cost system requires an audit of estimates.

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Explain how auditing inventory of a company with a standard cost system requires an audit of estimates. What are the estimates? What procedures would the auditor performs related to variances produced by the system at year end? Why?

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Auditing and Assurance Services Understanding the Integrated Audit

ISBN: 978-0471726340

1st edition

Authors: Karen L. Hooks

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Question Posted: Jan 21, 2015 10:41 AM

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Explain how auditing inventory of a company with a standard cost system requires an audit of estimates.

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The standard cost system employed by a company assumes certain costs are generally incurred during c...View the full answer

Auditing and Assurance Services Understanding the Integrated Audit

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