Which of the Following Procedures Is Not Included in a Review

question 12

Multiple Choice

Which of the following procedures is not included in a review engagement of a nonpublic entity?

• A)Inquiries of management.
• B)Inquiries regarding significant events subsequent to the balance sheet date.
• C)Any procedures designed to identify relationships among data that appear to be unusual.
• D)A study and evaluation of internal control.

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Definitions:

Productivity

The measure of how efficiently inputs, such as labor and capital, are converted into outputs, such as goods and services.

Market Wage

The prevailing wage rate in the labor market for a given type of work, determined by supply and demand for labor.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, within a specific economy or market.

Maximize Profits

The process of increasing the difference between total revenue and total cost to the highest possible level.