The Standard of Due Care to Which the Auditor Is

question 112

Multiple Choice

The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the

• A) prudent person concept.
• B) common law doctrine.
• C) constructive care concept.
• D) vigilant person concept.

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Definitions:

Actual Materials Price

The price actually paid for raw materials used in the production process, which can be compared to the standard or budgeted cost to assess efficiency.

Standard Price

A pre-determined cost that a company expects to pay for materials, labor, and overhead expenses.

Standard Price

A pre-determined cost assigned to a product or service, often used in budgeting and performance evaluations.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services.