When Reading the Corporate Minutes,the Auditor Extracted the Approved Annual

question 68

Multiple Choice

When reading the corporate minutes,the auditor extracted the approved annual salary for the President,the Chief Executive Officer,and other senior executives.What audit step would the auditor likely conduct with this information?

• A)trace the payroll amount to each individual officer's payroll record
• B)check that the payroll has been recorded into the correct bank account
• C)verify that payroll cheques have two signatures for all large amounts
• D)ensure that all overtime is approved and adequately documented

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Definitions:

Total Cost

The complete amount of money required for the production of a specific quantity of goods or services, including both fixed and variable costs.

Average Total Cost

The total cost divided by the quantity produced, representing the per-unit cost of production.

Marginal Costs

The expense involved in the production of an additional unit of a product or service.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total number of units produced.