In Determining the Extent to Which the Auditor May Use

question 40

Multiple Choice

In determining the extent to which the auditor may use the work of others in the audit of ICFR, the auditor should do all of the following except:

• A)be ready to document the extent to which he or she relied on the work.
• B)evaluate the risks associated with the controls subjected to the work of others.
• C)evaluate the competence and objectivity of the individuals who performed the work.
• D)All of these are required.

Understand the difference between favorable and unfavorable variances and their implications on budget performance.

Calculate the materials quantity variance and understand its impact on manufacturing efficiency.

Determine the price variance for materials and supplies and assess its effect on cost management.

Assess the overall financial performance through the analysis of total expenses variance.

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Definitions:

Minnesota Multiphasic Personality Inventory

A widely used psychological test that assesses personality traits and psychopathology through a series of true or false questions.

Objective Personality

A personality assessment approach that relies on external, measurable evidence rather than subjective judgment.

Projective Personality

A personality assessment technique that involves responding to ambiguous stimuli, revealing hidden emotions and internal conflicts.

Cross-cultural

Pertaining to or comparing different cultures, with an emphasis on understanding cultural diversity and the influence of culture on human behavior.