The Standards of the Institute of Internal Auditors (IIA)are Grouped

question 19

Essay

The standards of the Institute of Internal Auditors (IIA)are grouped under two broad categories.Identify and briefly explain each of the categories.Each category has special standards written for specific types of audits.Identify the two types of special standards for each category.

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Definitions:

Units of Product

The quantity of product items or goods produced.

Actual Hours Worked

This refers to the total hours an employee has been physically present and working at their job within a specific period.

Direct Labor Costs

The wages and benefits paid to employees who are directly involved in the production of goods or services.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead and the standard cost of variable overhead allocated for the actual production.