What Are the Three Broad Types of Audit Procedures? What

question 7

Essay

What are the three broad types of audit procedures? What is the purpose of each test?

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Definitions:

Revenue Variances

The difference between actual revenue and budgeted or projected revenue.

Spending Variances

The difference between actual spending and budgeted or planned spending in various categories.

Cost Drivers

Factors that cause changes in the cost of an activity or process, which are used to allocate costs based on actual usage or consumption.

Vocational School

An educational institution that provides specialized training and education aimed at preparing students for specific trades, crafts, or careers.