As the Last Step Before Distributing an Audit Plan, an Auditor

question 65

Multiple Choice

As the last step before distributing an audit plan, an auditor should have the plan

• A) approved by the client
• B) approved by the auditee
• C) reviewed by the organization to be audited
• D) reviewed by auditee management

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Definitions:

Homogeneous

Characterized by uniformity or similarity in composition, nature, or character, often used in reference to materials or mixtures.

Processing Department

An organizational unit where work is performed on a product and where materials, labor, or overhead costs are added to the product.

Process Costing

An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion.

Job-Order Costing

A costing system used in situations where many different products, jobs, or services are produced each period.