Revision of the Planned Level of Detection Risk Will Be

question 65

Multiple Choice

Revision of the planned level of detection risk will be necessary whenever:

• A) accounts are affected by more than one transaction class.
• B) the multiple control risk assessments for the same account balance assertion differ.
• C) the lower assessed control risk approach is used.
• D) the final assessed control risk does not support the planned level.
• E) the final assessed control risk is not the same as the actual level.

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Definitions:

Activity-Based Costing

A method in cost accounting that assigns costs to products and services based on the activities involved in their production or delivery.

Activity Rates

Rates used in activity-based costing to assign overhead costs to products or services, based on the activities that drive those costs.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate cost information.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing detailed information on where and how costs are incurred.