Which of the Following Examples of Dual Purpose Tests Are

question 101

Multiple Choice

Which of the following examples of dual purpose tests are correct?

• A)they give the auditor evidence that the financial statements are free from material misstatements
• B)they give the auditor evidence about whether a control is operating effectively
• C)they give the auditor evidence of reasonable assurance that the financial statements are free from material misstatements
• D)they give the auditor evidence that the financial statements are fairly presented
• E)they give the auditor evidence to detect misstatements in the financial statements
• F)both A and C
• G)both A and D
• H)Both B and E
• I)both C and D

Assess the impact of variances on performance evaluation systems.

Understand the treatment of year-end balances in variance accounts.

Recognize the role of engineers and other professionals in setting standard costs.

Analyze the impact of labor rates and efficiency on production cost variances.

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Definitions:

Positive Emotions

Feelings that are generally pleasant and uplifting, such as happiness, joy, and love, contributing to overall well-being and satisfaction.

Yerkes-Dodson Law

A principle stating that performance improves with physiological or mental arousal, but only up to a point, after which performance declines.

Arousal

A state of physiological and psychological alertness and readiness, often triggered by stimuli in the environment.

Performance

The act of carrying out a task or the level of efficiency and effectiveness with which it is completed.