One Way an Auditor Gauges How Much Audit Work and Testing

question 24

Multiple Choice

One way an auditor gauges how much audit work and testing needs to be performed is through evaluating materiality and seeking reasonable assurance about the nature of the information or process.What is key to determining materiality during an audit?

• A)determining if material errors exist in the information or processes undergoing audit
• B)the testing of records,account balances,and procedures on a sample basis
• C)determining what is and is not important given a set of circumstances is primarily a matter of judgment
• D)none of the above

---

Definitions:

Floral Bouquets

An arrangement of flowers, typically designed and wrapped for decorative or gifting purposes.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire plant or factory, applied to all production units equally.

Activity-based Costing

A costing method that allocates overhead costs to specific activities, providing more accurate product costing.

Activity-based Costing

A method of costing that identifies individual activities as fundamental cost objects and assigns costs to them based on their use of resources.