The Written Representation from Management _______

question 65

Multiple Choice

The written representation from management _______.

• A)supplements the inquiries made of management regarding subsequent events and the evidence gathered from audit procedures
• B)supplements the inquiries made of the auditor regarding subsequent events and the evidence gathered from audit procedures
• C)can be drafted by the auditor and signed by the internal audit function on behalf of management
• D)transfers legal liability for any financial statement errors to the auditor

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Definitions:

Labour Efficiency Variance

The difference between the actual labor hours taken to produce a good and the standard hours expected, multiplied by the standard labor rate.

Actual Labour Hours

Actual Labour Hours refer to the total hours worked by employees, measured after the work has been completed, usually for comparison with planned or budgeted hours.

Volume Variance

The difference between the expected volume of sales or production and the actual volume, which can impact costs and profits.