When Assessing Control Risk

question 32

Multiple Choice

When assessing control risk,

• A) many auditors use actuarial tables to assist in the control risk assessment process.
• B) each control can be used to satisfy only one audit objective.
• C) many auditors use a control risk matrix to assist in the control risk assessment process.
• D) all controls, including key controls, should be considered.

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Definitions:

Direct Materials Cost

The cost of raw materials that are directly used in the manufacturing of a product.

Activity-Based Costing

A costing approach that allocates overhead and indirect expenses to distinct activities, offering a more precise cost estimation for products.

Product Margin

The amount by which the selling price of a product exceeds its production or acquisition cost.

Direct Materials Cost

The expense associated with raw materials and components directly used in the manufacturing of a product.