IIA
IIA-CIA-PART2 · Question #460
IIA-CIA-PART2 Question #460: Real Exam Question with Answer & Explanation
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Question
A manufacturer is under contract to produce and deliver a number of aircraft to a major airline. As part of the contract, the manufacturer is also providing training to the airline's pilots. At the time of the audit, the delivery of the aircraft had fallen substantially behind schedule while the training had already been completed. If half of the aircraft under contract have been delivered, which of the following should the internal auditor expect to be accounted for in the general ledger?
Options
- ATraining costs allocated to the number of aircraft delivered, and the cost of actual production hours
- BAll completed training costs, and the cost of actual production hours completed to date.
- CTraining costs allocated to the number of aircraft delivered, and 50% of contracted production
- DAll completed training costs, and 50% of the contracted production costs.
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