The Main Difference Between SAS and AU Is

question 8

Multiple Choice

The main difference between SAS and AU is

• A) They are the same except that SAS are organized chronologically and the AU are organized by topical area.
• B) SAS are issued by the ASB and AU are issued by the PCAOB.
• C) SAS are issued by the PCAOB and AU are issued by the ASB.
• D) SAS define minimum standards of performance for auditors while AU define financial accounting principles that must be followed according to GAAP.

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Definitions:

Machine Hours

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and efficiency.

Fixed Overhead Volume Variance

The difference between the budgeted fixed overhead and the actual fixed overhead incurred, due to changes in production volume.

Standard Cost

A predetermined cost of manufacturing an item, including direct materials, labor, and overheads, used for budgeting and performance evaluation.

Overhead Cost Performance Report

A document that compares the actual overhead costs incurred to the budgeted or standard overhead costs, for the purpose of monitoring and controlling these costs.