Multiple Choice
You are using analytical procedures to verify direct labour costs.Which of these information sources would be considered the least reliable to use to establish an expected amount?
A) Prior year's average monthly production hours,obtained from the prior-year audit working papers.
B) Budgeted direct labour hours from the master budget,which was approved by the Board of Directors.
C) The production manager's personal forecast of annual production hours.
D) Industry averages obtained directly from a verified government website.
Correct Answer:
Verified
Correct Answer:
Verified
Q10: What is the most reliable form of
Q11: An important planning decision made by the
Q12: The audit procedure "vouch a sample of
Q13: Using audit software to re-compute the amount
Q14: Evidence that does not relate to one
Q16: Rank the following forms of audit evidence
Q17: Spoken and written representations given by the
Q18: Working papers that meet the requirements of
Q19: For good form,each audit evidence paper should
Q20: GAAS requires the auditor to gather "sufficient,appropriate