A Flowchart Is Most Frequently Used by an Auditor in Connection

question 21

Multiple Choice

A flowchart is most frequently used by an auditor in connection with the:

• A)preparation of generalised computer audit programs.
• B)review of the client's internal accounting controls.
• C)use of statistical sampling in performing an audit.
• D)performance of analytical procedures on account balances.

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Definitions:

Diminishing Marginal Product

A principle stating that as additional units of a variable input are added to a fixed input, the additional output produced from each new unit decreases.

Production Function

An equation or representation showing the relationship between inputs used in production and the output of goods and services.

Total Cost

The total expense of production encompassing both constant and fluctuating costs.

Average Variable Cost

The total variable costs of production divided by the quantity of output produced.