An Internal Auditor Is Discussing an Audit Problem with an Engagement

question 232

Multiple Choice

An internal auditor is discussing an audit problem with an engagement client. While listening to the client, the internal auditor should:

• A) Prepare a response to the client.
• B) Take mental notes on the speaker's nonverbal communication, as it is more important than what is being said.
• C) Make sure that all details, as well as the main ideas of the client, are remembered.
• D) Integrate the incoming information from the client with information that is already known.

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Definitions:

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, adjusting for the portion of those goods that is complete.

Process Costing

An accounting method used to allocate costs to units of output in industries where production is continuous and units are indistinguishable from each other.

Weighted-Average Method

A technique used in inventory valuation that averages the costs of all goods available for sale during the accounting period.

Process Costing

A costing methodology used in manufacturing where costs are allocated to processes or departments and then assigned to units of product.