According to IIA Guidance, Which of the Following Are Macro-Level

question 251

Multiple Choice

According to IIA guidance, which of the following are macro-level audit activities performed for an assurance engagement of the purchasing department? 1. Obtain and review all purchasing-related audit reports issued within the past year. 2. Meet with the quality assurance group to discuss its previous reports of any purchasing-related findings. 3. Review a memo written by the purchasing manager that outlines ongoing problems with the purchasing software. 4. Request a copy of the report from a purchasing audit conducted last year by an external service provider.

• A) 1 and 2.
• B) 1 and 3.
• C) 2 and 4.
• D) 3 and 4.

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Definitions:

Variable Expenses

Costs that vary directly with the level of activity or production output, such as raw materials and direct labor.

Break-even Point

The point at which total costs and total revenues are equal, meaning there is no profit or loss.

Variable Expenses

Costs that vary directly with levels of production or sales volume, such as materials and labor.

Fixed Expenses

Recurring costs that do not vary with the volume of production or sales, similar to fixed costs.