If an Existing Customer Number Is Taken from a Former

question 40

Multiple Choice

If an existing customer number is taken from a former customer that no longer does business with the company and is assigned to a new customer, _______.

• A)this may cause problems with the underlying data analysis
• B)then no problems should occur and the testing should be straightforward
• C)this should not complicate or cause issues with the data analysis
• D)the auditors should generate a new customer number and assign it to the old customer

---

Definitions:

Standard Costs

Predicted costs associated with manufacturing or providing a service, used for budgetary control and performance analysis.

Cash Account

An account that tracks the flow of cash transactions, including all receipts and payments of cash.

Standard Cost Variances

Differences between the planned (standard) costs and the actual costs incurred.

Cost of Goods Sold

The cost of goods sold (COGS) is the direct cost attributable to the production of goods sold by a company, including the cost of materials and labor.