Which of the Audit Objectives Is Performed First When Doing

question 65

Multiple Choice

Which of the audit objectives is performed first when doing the tests of details of balances for accounts receivable?

• A) Accounts receivable are owned.
• B) Accounts receivable in the aged trial balance agree with related master file amounts, and the total is correctly added and agrees with the general ledger.
• C) Existing accounts receivable are included.
• D) Recorded accounts receivable exist.

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Definitions:

Direct Labor Hours

The total hours worked directly on producing goods, an important factor in costing and efficiency analyses.

Factory Overhead

All indirect costs associated with manufacturing a product, including utilities, maintenance, and salaries of non-direct labor.

Total Factory Overhead

Total factory overhead encompasses all indirect costs associated with manufacturing, including utilities, depreciation, and salaries for supervisory personnel, that cannot be directly traced to specific products.

Activities Per Product

The specific tasks or operations that need to be completed in order to produce each unit of a product.