Which Phase(s) of the Audit Uses Inquiries of Clients as a Type

question 27

Multiple Choice

Which phase(s) of the audit uses inquiries of clients as a type of evidence?

• A) plan and design
• B) tests of controls and substantive tests of transactions
• C) completion of the audit and issuance of the audit report
• D) all of the above

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Definitions:

Cost of Goods Sold

Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold in a company, including materials and labor costs.

Total Manufacturing Costs

The complete sum of expenses related to producing goods, including labor, materials, and overhead.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods in a specific period, including materials, labor, and overhead.

Overhead Account

An accounting category used to record all indirect costs associated with the production process, such as utilities, rent, and administrative expenses.