The Partial or Complete Outsourcing of Internal Audit Activities Is

question 10

Multiple Choice

The partial or complete outsourcing of internal audit activities is most likely made to public accounting firms or to other specialized firms who perform which of the following?

• A) Primarily risk, control, and audit activities.
• B) Attestation services as demanded by market place.
• C) Operations analysis and risk analysis.
• D) Analytical and substantial procedures.

---

Definitions:

Machine-Hours

A measure of the amount of time machines are running in the production process, used as a basis for allocating overhead costs.

Manufacturing Overhead

All indirect costs related to the production process, such as maintenance, utilities, and quality control, not directly traceable to a product.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the production process begins based on estimated costs and activity levels.

Job-Order Costing

An accounting method used to assign costs to specific products or jobs, typically utilized in custom or specialized production.