In Operational Auditing,the Preliminary Survey Serves as a Guide for the Development

question 45

True/False

In operational auditing,the preliminary survey serves as a guide for the development of the audit program.

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Definitions:

Relevant

Relates to or directly impacts the subject under discussion.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent, insurance, and salaries.

Sunk Costs

Costs that have already been incurred and cannot be recovered.

Avoidable Costs

Expenses that can be eliminated if a particular decision is made or if a particular activity is discontinued.