A Controls Reliance Audit Includes Substantive Procedures and Does Not

question 63

True/False

A controls reliance audit includes substantive procedures and does not include tests of controls.

---

Definitions:

Manufacturing Cycle Time

The total time required to manufacture a product, from the start of the production process to its completion.

Kanban

A scheduling system for lean manufacturing and just-in-time production, which uses visual cues to signal steps in the production process.

JIT Environment

A production strategy that aims to reduce times within the production system as well as response times from suppliers and to customers, characterized by just-in-time inventory management.

Inventory Tactics

Strategies and approaches used in managing inventory levels, turnover, and order quantities to optimize operational efficiency and meet customer demand.