The Existence of Advanced Automated Systems Affects the Audit Process

question 32

Multiple Choice

The existence of advanced automated systems affects the audit process.Which of the following characteristics is an indicator of the presence of an advanced automated information system?

• A)use of data communications (such as the Internet)to transfer transaction data
• B)use of packaged software to process sales both locally and across Canada
• C)use of customer relationship management systems to manage sales information
• D)numerically-controlled equipment used in the manufacturing process

Understand the process of recording costs transferred within departments and determining end period work in process balances.

Master the calculation of equivalent units of production for both conversion costs and material costs using the weighted average and FIFO methods.

Learn to compute per-unit costs for both conversion and direct materials.

Understand the preparation and analysis of a cost of production report for a manufacturing process.

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Definitions:

Arc Welding Electrodes

Consumable or non-consumable pieces of metal in arc welding that conduct a current to join metallic parts.

Tempered Steel

Steel that has been heat-treated to increase its strength and durability through a process of heating and cooling.

Dump Truck Frame

The structural backbone of a dump truck, designed to support the cab, engine, and dumping mechanism, while withstanding heavy loads.

Lift Ram

A hydraulic cylinder used to raise or lower machinery or heavy loads in various applications like construction.