One Difference Between the AICPA Auditor's Report and That of the PCAOB

question 68

Multiple Choice

One difference between the AICPA auditor's report and that of the PCAOB is:

• A) The PCAOB report is not signed by the auditor
• B) The AICPA report is not signed by the auditor
• C) The PCAOB report does not have section headings
• D) Both reports are the same

---

Definitions:

Variable Manufacturing Overhead

Costs of manufacturing that vary with the level of production output, such as utilities and some wages.

Materials Price Variance

The variance between the real expense of materials and their anticipated (or standard) cost.

Direct Labor-hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating labor costs to products or job orders.

Variable Overhead Efficiency Variance

The difference between the expected (standard) and actual variable overhead costs based on the actual level of an activity.