Which of the Following Is Not a Direct Result of Performing

question 36

Multiple Choice

Which of the following is not a direct result of performing analytical procedures?

• A) identify areas of potential misstatements
• B) reduce detailed audit tests
• C) understand the client's business
• D) identify specific errors in the accounts

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Definitions:

Direct Labor-hours

Sum total of hours expended by workers directly active in the manufacturing domain.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost.

Variable Manufacturing Overhead

Costs in the manufacturing process that change with the level of production output, such as utilities and materials used in production.

Last Month

Refers to the period of time from the first to the last day of the month immediately preceding the current month.