Which of the Following Is an Audit Procedure in Response

question 101

Multiple Choice

Which of the following is an audit procedure in response to assessed risks?

• A)Making changes to the nature, timing, or extent of audit procedures to obtain more persuasive evidence
• B)Developing an understanding of the entity's control environment
• C)Designing and implementing appropriate responses to financial statements
• D)Changing the recalculating procedures applied in financial statements

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Definitions:

Direct Materials

Raw materials that can be directly traced to the production process of a product and are considered a part of the finished product.

Direct Labor

The cost of wages paid to workers directly involved in the production of goods or services.

Job Order Cost Sheets

Documents that record and track the costs associated with a specific job or order.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used in creating the good.