In the Auditing and Attestation Section of the CPA Exam,candidates

question 33

Multiple Choice

In the Auditing and Attestation section of the CPA exam,candidates are expected to demonstrate knowledge and understanding of the professional standards and the skill to apply that knowledge to performing auditing tasks.Some of the tasks that candidates are expected to perform are

• A)apply professional requirements in theory
• B)exercise due care in the performance of work
• C)demonstrate an appropriate level of professional competence in the performance of work
• D)maintain independence in appearance in all matters relating to the audit
• E)research relevant professional literature
• F)both A and C
• G)both B and E
• H)both D and E

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Definitions:

Selling And Administrative Expenses

Costs related to sales activities and general management of a business, excluding production costs.

Budgeting

The process of creating a plan to spend money, setting forth projections for revenues and expenses over a certain period of time.

Activity Variance

The difference between what was expected in terms of spending or usage during a period and what actually occurred.

Administrative Expenses

Costs associated with the general administration of a business, including items like salaries of executives, office supplies, and utilities.