Which Is NOT a Valid Circumstance Where Working Papers May

question 10

Multiple Choice

Which is NOT a valid circumstance where working papers may be given to a third party?

• A) when requested by a successor auditor
• B) when permission is granted by the client
• C) when required by law
• D) both A and B

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular account.

Revenue Variance

The difference between actual revenue and budgeted or forecasted revenue.

Revenue And Spending Variances

The differences between the actual amounts of revenue and spending and their budgeted or forecasted amounts, analyzed for budget control.

Flexible Budget

A flexible budget is an estimation tool that adjusts for changes in the volume of activity, allowing for a more realistic comparison of actual to budgeted performance.