Generally Accepted Auditing Standards Require That Analytical Procedures ________

question 10

Multiple Choice

Generally accepted auditing standards require that analytical procedures ________.

• A)Be used in the planning and final review stages,as well as during the audit as a substantive test.
• B)Be used in the planning and final review stages of the audit and optionally they can be used as a substantive test during the audit.
• C)Be used in the planning stage only,with the option to use them as a substantive test and in the final review stage.
• D)Be used in the final review stage,and can optionally be applied as a substantive test in the planning stage

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Definitions:

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain level of output, valued at the standard labor rate.

February

The second month in the Gregorian calendar, recognized for its 28 days in regular years and 29 days during leap years.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead based on hours worked and the standard cost of variable overhead for the actual hours worked.

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the standard costs expected for the actual production level.