Examining the Minutes of the Board of Directors' Meetings for Proper

question 73

True/False

Examining the minutes of the board of directors' meetings for proper authorization ordinarily tests the existence objective for capital stock transactions.

---

Definitions:

Management By Exception

A management strategy where leadership steps in only when performance deviates significantly from standards, focusing on the exceptions rather than routine operations.

Price Variance

The difference between the actual price paid for something and its standard or expected price, often analyzed in cost accounting.

Quantity Variance

The difference between the expected and actual quantity of materials used in production, reflecting efficiency in material usage.

Direct Materials

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