Which of the Following Would Be Used by the Auditor

question 53

Multiple Choice

Which of the following would be used by the auditor to address the possibility of kiting?

• A)Cut-off bank reconciliations.
• B)Interbank transfer schedules.
• C)Bank confirmations of account balances.
• D)Bank confirmations of loan guarantees.

Grasp the concept of fixed manufacturing overhead rate and its application.

Analyze direct materials, direct labor, and manufacturing overhead variances.

Understand the impact of standard cost variances on Cost of Goods Sold.

Calculate net operating income under a standard cost system.

---

Definitions:

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the gain from the investment by its cost.

Turnover

In financial terms, it can also refer to the volume of business conducted over a period of time, such as sales turnover.

Operating Assets

Assets that are utilized in the daily operations of a business to generate revenue, excluding investment and non-operational assets.

Margin

The difference between the selling price of a product or service and its cost, often expressed as a percentage of the selling price.