When Making Decisions About Evidence for a Given Audit, the Auditor's

question 37

Multiple Choice

When making decisions about evidence for a given audit, the auditor's goal is to obtain a sufficient amount of timely, reliable evidence that is relevant to the information being verified.In addition, the goal of audit efficiency is to gather and evaluate the information:

• A)no matter the cost involved in obtaining such evidence.
• B)even if cost is irrelevant to the auditor, because they bill the client for costs incurred.
• C)at the lowest possible total cost.
• D)at the cost suggested in the engagement letter.

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Definitions:

Variable Resource

Inputs or resources used in production that change in amount with the level of output, such as labor or raw materials.

Unskilled Labor

Labor that requires no specialized skills, education, or training.

Skilled Labor

Workers who possess specialized skills, training, or knowledge that are used in the production of goods or the provision of services.

Wage Rates

The amount of money paid to workers per unit of time, often an hour, reflecting compensation for labor.