Identify the appropriate answer related to the excessive cost of an idle plant.

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Chapter 12, Problem 34COQ

To determine

Identify the appropriate answer related to the excessive cost of an idle plant.

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An auditor discovered the following errors and irregularities while performing tests of controls: Inventory damaged by rain remains in inventory at full cost. Required: What control would have prevented or detected each of the aforementioned errors/irregularities? What tests should the auditor perform to test each control? To which financial statement assertion does the error or irregularity relate?

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