An Auditor Sets an Embedded Audit Module to Flag All

question 72

Multiple Choice

An auditor sets an embedded audit module to flag all credit transactions in excess of $5,000.The flag causes the system state to be recorded before and after each transaction is processed.The auditor is using

• A)audit hooks.
• B)an integrated test facility.
• C)the snapshot technique.
• D)a system control audit review file.

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Definitions:

Predetermined Overhead Rate

An estimated overhead cost rate used to allocate overhead costs to products or job orders based on activity levels.

Factory Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and salaries of production supervisors, which are not directly traceable to specific units.

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing products or delivering services.

Direct Materials

Raw materials directly used in the manufacturing of a product, easily traceable to the finished good.