Often, for Efficiency, the Auditor Will Ignore Internal Controls

question 87

Multiple Choice

Often, for efficiency, the auditor will ignore internal controls.This can occur because:

• A) control risk is assumed to be maximum.
• B) it is a small entity.
• C) detection risk is low.
• D) all of the above

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Definitions:

Volume-related Measures

Quantitative assessments related to the amount or size of something, especially used in the context of production and sales.

Overhead Costing Accuracy

The degree to which allocated overhead costs accurately represent the actual expenses incurred by the production process or specific products.

Plantwide Overhead Rate

An overhead allocation rate used throughout an entire plant or company to allocate indirect costs to products.

Overhead Allocation Base

A measure used to distribute overhead costs among various products or service units within a business.