Normally,the Auditor's Work Does Not Extend into the Following Year

question 66

Multiple Choice

Normally,the auditor's work does not extend into the following year.However,the auditing standards require the auditor to consider certain events that occur in the year following the year under audit,referred to as

• A)following events
• B)substantive tests of transactions
• C)subsequent events
• D)disclosure events

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Definitions:

Activity Cost Pools

Groupings of individual costs related to a particular activity, used in activity-based costing to allocate costs more accurately.

Direct Labor-hours

The overall hours that workers, who are a part of the manufacturing operations, put in.

Activity-based Costing

A costing method that allocates overhead costs to products based on the activities required to produce those products.

Record-keeping Cost

Expenses associated with maintaining accurate and comprehensive records of a company’s financial transactions and operations.