Australian Auditing Standards (ASAs) Issued by the Australian Auditing and Assurance

question 37

Multiple Choice

Australian auditing standards (ASAs) issued by the Australian Auditing and Assurance Standards Board (AUASB) contain:

• A)the effective date of the standard.
• B)references to the enforcement provisions of the Corporations Act 2001.
• C)the penalties for non-compliance with the standard.
• D)specific audit procedures to meet the requirements of the standard.

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Definitions:

Least Costly Combination

An economic principle that firms use to minimize costs while combining different factors of production to produce a given output.

Maximizing Profits

The goal of businesses to make the highest possible profit, often by increasing revenue, reducing costs, or both.

MP

No standard definition available; it could refer to "Marginal Product" in economics, which is the extra output generated by adding one more unit of input.

Economic Profits

The extra income a business makes after accounting for all explicit and implicit costs, representing a return above the normal profit level.