Program-Oriented CAATs Are Useful Primarily For

question 68

Multiple Choice

Program-oriented CAATs are useful primarily for:

• A) tests of balances.
• B) tests of controls.
• C) analytical review tests.
• D) any type of audit testing.

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Definitions:

Administrative Expenses

Costs related to the general operation of a company, such as salaries of executive personnel, legal fees, and insurance.

Minimum Cash Balance

The least amount of cash that a company aims to hold in its accounts to meet immediate operational needs.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct material and direct labor costs.

Direct Materials

Raw materials that can be directly attributed to the manufacturing of a product.