The Preparation of an Audit Plan Prior to the Beginning

question 35

Multiple Choice

The preparation of an audit plan prior to the beginning of field work is appropriately considered documentation of

• A)Planning.
• B)Supervision.
• C)Information evaluation.
• D)Quality assurance.

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Definitions:

Efficiency Variance

The difference between the actual input used in production and the standard input expected, calculated to assess performance.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a given period, indicating over or under spending.

Unfavourable Variances

Differences between actual costs and standard or expected costs that negatively impact the financial performance of an organization.

Favourable Variances

Differences between actual and budgeted financial performance that are beneficial to the company, such as lower expenses or higher revenues than planned.