When Obtaining Evidence About Internal Control Operating Effectiveness,the Auditor Will

question 14

True/False

When obtaining evidence about internal control operating effectiveness,the auditor will select only entity-wide controls for testing.

---

Definitions:

Work in Process Inventory

Items that are in the process of being manufactured but are not yet complete.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, often analyzed in cost accounting or budgeting.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours allowed for the work done, multiplied by the standard labor rate, indicating the efficiency of labor used in production.

Work in Process Inventory

The cost of unfinished goods in production, including labor, raw materials, and overhead.