Which of the Following Items Is Not Important with Regard

question 58

Multiple Choice

Which of the following items is not important with regard to an auditor's responsibilities for communicating with the audit committee?

• A) Disagreements with management.
• B) Difficulties encountered in the performance of audit testing.
• C) Significant deficiencies and material weaknesses in ICFR.
• D) New staff members included on the audit team.

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Definitions:

Variable Costing

An accounting method that only assigns variable costs to inventory, excluding fixed manufacturing overhead costs.

Unit Product Cost

The total cost (both direct and indirect) associated with producing a single unit of product.

Break-even

The point at which total costs and total revenue are equal, meaning no net loss or gain is incurred by the business.

Sales Dollars

Represents the total revenue generated from the sale of goods or services before any expenses are subtracted.