Audit Quality. What Are Three Drivers of Audit Quality According to the to the Financial

question 81

Essay

Audit Quality.
What are three drivers of audit quality according to the Financial Reporting Council (FRC)'s "The Audit Quality Framework"?

---

Definitions:

Variable Costs

Variable costs are expenses that change in proportion to the activity or volume of business, such as materials and labor costs.

Fixed Inputs

Resources used in production that cannot be easily increased or decreased in a short period.

Marginal Cost

The cost of producing an additional unit of a good or service.

Average Total Cost

Represents the per-unit total cost of production, calculated by dividing the total cost by the total quantity produced.