Which Type of Audits Can Detect Fraud and Errors

question 73

Multiple Choice

Which type of audits can detect fraud and errors?

• A) external audits
• B) internal audits
• C) network security audits
• D) all of the above

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Definitions:

Direct Labor

The compensation, such as salaries or wages, given to workers who are directly engaged in producing goods or services.

Manufacturing Costs

Expenses directly related to the production of goods, including raw materials, labor, and overhead.

Prime Costs

The sum of direct materials cost and direct labor cost, representing the primary costs involved in producing a product.

Finished Goods Inventory

The stock of completed products ready for sale but not yet sold, representing a current asset on the balance sheet.