Once an Understanding of Internal Controls Is Obtained That Is

question 29

Multiple Choice

Once an understanding of internal controls is obtained that is sufficient for audit planning,then the auditor must first assess

• A)whether a lower level of control risk could be supported.
• B)whether the financial statements are auditable.
• C)the level of control risk supported by the understanding obtained.
• D)the level of control risk to use.

Recognize the use of time tickets for assigning direct labor costs to jobs.

Differentiate between the documents used for receiving and requisitioning materials.

Grasp the journal entry process for recording materials (both direct and indirect), labor, and overhead costs.

Understand the role of job cost sheets in recording direct and indirect labor costs.

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Definitions:

Nondeclarative Memory

A type of long-term memory that does not require conscious thought to retrieve, including skills, habits, and learned reflexes.

Prospective Memory

The aspect of memory that involves the ability to remember to perform an action at a future point in time.

Temporally Dated

Specific to a particular time or associated with a particular period.

Previously Learned

Refers to information or skills that have been acquired in the past and can influence or be recalled in current situations.