Inquiries of Management Are Used to Help Identify Subsequent Events

question 45

Multiple Choice

Inquiries of management are used to help identify subsequent events.To help obtain meaningful answers

• A)the standard firm checklist should be followed.
• B)these inquiries must be conducted with the proper client personnel.
• C)the inquiries should be conducted by senior audit personnel.
• D)they should be asked after the effective date of the audit report.

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Definitions:

Average Total Cost

Average total cost is the total cost of production (fixed plus variable costs) divided by the total quantity produced, indicative of the cost per unit at different levels of output.

Average Variable Cost

The total variable cost per unit of output, found by dividing total variable costs by the quantity of output produced.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, or insurance premiums.

Eyeglasses

Corrective or protective lenses mounted in a frame to aid vision or protect the eyes.