Which of the Following Is an Important Consideration During the Planning

question 29

Multiple Choice

Which of the following is an important consideration during the planning of the audit?

• A)Considering the independence of members of the audit team
• B)Performing some of the audit procedures prior to the end of the year under audit
• C)Considering the ability and expertise of the audit team with respect to accounting and auditing issues in the client's industry
• D)Considering the impact of tests of controls on the overall assessment of control risk

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Definitions:

Process Costing System

A costing method used in industries where production is continuous, assigning costs to units of product based on the process they go through.

Direct Materials

The raw materials that are used directly in the manufacturing of a product and can be easily traced to it.

Journal Entry

A record in the accounting journal that represents a business transaction, including information such as the date, accounts affected, and amounts debited and credited.

Process Costing System

An accounting system used to evaluate the cost associated with a production process that continuously produces homogeneous products.