SAS 109 Requires Auditors to Obtain an Understanding of an Organization's

question 33

Essay

SAS 109 requires auditors to obtain an understanding of an organization's control environment.Discuss two techniques that may be used to obtain such understanding.

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Definitions:

Contribution Margin Technique

A method used in managerial accounting to analyze the profitability of products, segments, or services by calculating revenues minus variable costs.

Depreciation

The systematic allocation of the depreciated cost of an asset over its useful life.

Real Estate Taxes

Taxes levied on property by the local government, based on the assessed value of the property.

Cleaning Service

A company or service provided by workers who perform cleaning tasks for residential or commercial spaces.