Once Risks Are Identified, Auditors Assess the Risk of Material

question 53

Short Answer

Once risks are identified, auditors assess the risk of material misstatement at the _______ level for these significant classes of transactions and account balances.
A.relevant assertion level | account | financial statement | disclosure

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Definitions:

Standard Fixed Manufacturing Overhead Rate

The predetermined rate used to apply fixed manufacturing overhead to products, based on an estimate of total fixed manufacturing costs and an allocation basis.

Actual Fixed Overhead Costs

The real costs incurred for fixed overhead during a specified accounting period.

Budgeted Activity

The planned level of output or activity for a specific period, used for planning and control purposes.

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the expected wage, multiplied by the actual hours worked.