The Manager's Review of the Working Papers Is Not Designed

question 41

Multiple Choice

The manager's review of the working papers is not designed to obtain assurance that:

• A) the judgements exercised by subordinates were reasonable and appropriate in the circumstances.
• B) the work done by subordinates has been completed in a cost effective manner.
• C) the working papers support the auditor's opinion.
• D) all significant accounting, auditing, and reporting questions raised during the examination have been properly resolved.

---

Definitions:

Normal Rate

Typically refers to a baseline or standard rate of interest, production, or growth that is considered usual or expected under normal circumstances.

Minimum Efficient Scale

The smallest level of production at which a firm can achieve the lowest long-run average total cost.

Economic Costs

The total cost of choosing one action over another, comprising both the costs directly incurred and the opportunity costs forgone by not taking the alternative action.

Total Revenue

The total amount of money received by a company from its sales of goods or services before any expenses are subtracted.