Which of the Following Audit Tests Is Usually the Most

question 67

Multiple Choice

Which of the following audit tests is usually the most costly to perform?

• A)analytical procedures
• B)tests of controls
• C)tests of details of balances
• D)procedures to obtain an understanding of internal control

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Definitions:

Factory Overhead Costs

Factory overhead costs are indirect expenses related to manufacturing, such as utilities, maintenance, and property taxes for the production facility.

Cost Information

Data related to the expenses incurred in the production, operation, or acquisition of goods and services, used for financial analysis and decision-making.

Direct Materials

Materials that can be directly traced to the production of specific goods or services.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.