Which of the Following Statements Is Wrong Regarding Continuous Audit

question 6

Short Answer

Which of the following statements is wrong regarding continuous audit?
A. Continuous audit is used to perform audit-related activities on a continuous basis
B. Testing in continuous audits often consists of continuous controls monitoring and continuous data assurance
C. Technology plays a key role in continuous audit in analyzing trends and patterns of transactions, identifying exceptions and anomalies, and testing controls
D. Continuous audit is frequently used to perform substantive tests and is used for testing of controls through transactional-data analysis

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead and the standard cost of variable overhead allocated for the actual production.

Supplies Cost

The cost associated with materials and items used in the operation or maintenance of a business or facility.

Machine-Hours

A measure of the amount of time a machine is operated, used for allocating machine operation costs to products or units produced.

Direct Labor Variances

The differences between the budgeted and actual costs of direct labor, analyzed to understand deviations in manufacturing expenses.