(7) (products, which of the procedures can most likely help him?) When the auditor want to know the change of cost-allocated method of several A. Inspection of assets & inquiryC. Inquiry & recalculatingB. Confirmation & inspection of documentationD. Recalculating & observation(8) () What is the level of assurance and type of opinion that can be provided on a reviewengagement?Level of assuranceReport wordingAReasonablePositiveNegativeBReasonableCLimitedPositiveLimitedNegativeD(9) Which of the following financial statement assertions is least relevant to the audit ofinventory?A. CompletenessB. Existenceс. ОссиrenceD. Classification(10) () Which of the following should the auditors obtain from the predecessor auditorsbefore accepting an audit engagement?A. Analysis of balance sheet accounts.B. Analysis of income statement accounts.C. Information about audit fees.D. Facts that might bear on the integrity of management.

“Since you have asked multiple questions, we will solve the first question for you. If you want any…

Answered: (7) ( ) When the auditor want to know…

(7) ( ) When the auditor want to know the change of cost-allocated method of several products, which of the procedures can most likely help him?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter6: Audit Evidence

Section: Chapter Questions

Problem 20RQSC

See similar textbooks

Related questions

Q: Explain the difference between observable and hidden quality costs.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Define opportunity costs and explain why they represent acommon source of error in making cost…

Q: Why is it important to consider the relationships amongcost, quality, and selling prices when…

A: The question has covered the relationship between Cost, Quality , and Selling Price For setting up…

Q: Explain the implementation issues of the cost estimation methods

A: Cost estimation is the process of determining the probable cost of a product before starting the…

Q: Discuss the differences between the attest function and assurance services.

A: Auditing is a gathering of information and evaluation of evidence as to report on the degree of…

Q: “The inspection point is the key to the allocation of spoilage costs.” Do you agree? Explain.

A: Spoilage: Spoilage is the defective item at intermediate or final stage. The spoilage goods cannot…

Q: How should one establish performance measurements? And how can they be aggregated?

A: Business Sustainability: Business sustainability is increasing the business worth for a long term,…

Q: Differentiate between Cost audit and Financial audit.

A: An auditing is a process where the auditor examines or inspects various books of accounts, followed…

Q: The measure of how well a product meets its requirements or specifications is called: * O Quality of…

A: While providing goods and services to customers, every seller wants that the quality of the products…

Q: Which of the following statement is true under the Standared Costing System a. Standard cost is a…

A: Solution: Standard costing system is the system of cost estimation in the manufacturing process. It…

Q: An example of an appraisal cost would be: O Scrap O Process or product design O Product recalls O…

A: Cost of Good Quality is incurred in order to reduce the Cost of Poor Quality, so that overall Cost…

Q: Explain the difference between the engineered-cost and discretionary-cost approaches to…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: .For external reporting purposes, the amount of inventoriable costs must be: our answer . For…

A: Inventoriable Cost: Inventoriable costs are those costs which are directly associated with the…

Q: Identify important internal control activities present in a properly designed system to mitigate the…

A: Internal control: Internal control refers to the rules and regulation that are followed by the…

Q: s

A: Interim reporting : An interim statement is a financial report that covers a period of less than a…

Q: Why is the reporting of segment information required? Justify your response. Why is the reporting of…

A: Segment reporting deals with in-detail segment-wise financial reporting in the financial statements…

Q: How do I verify that Harlows actual cost figures are correct?

A: Total Cost=Direct material+Direct labor+Variable Overhead+Fixed Overhead

Q: Which of the following would be classified as an external failure cost on a quality cost report?

A: External failure cost: External failure costs refer to the expenses undertaken by the company…

Q: Which of the following is not included in the procedures of applying the Theory of Constraints for…

A: Theory of Constraints says that in order to maximize efficiency, the production should be limited to…

Q: What do you think of a fully tested and defect free product? Can it be considered as a quality…

A: To change the framework, the executives first necessities to recognize unusual from typical variety.…

Q: How do strategic factors affect the proper use of relevant cost analysis?

A: Relevant cost analysis is the process of identifying the incremental cost and benefits of deciding…

Q: Help question 14

A: There is a quality check for products before shipping to customers to ensure that their products…

Q: Which of the following is NOT true of a turn- around document? a. They may reduce the number of…

Q: Once standard costs are established, what conditions wouldrequire that standards be revised?

A: Standard costs: Standard costs are the per-unit cost that is expected to be incurred under normal…

Q: Inspector expenses and other expenses that are designed to ensure quality or uncover defects are…

A: Company starts processing of work after some planning of costs, revenue or processes to be followed.…

Q: would be the Total External Failure Cost appearing on the quality cost report.

A: Solution:- Heracross Inc., quality cost based on given information :

Q: What features of the cost accounting system would be expected to prevent the omission ofrecording…

A: Cost accounting is the branch of Accountancy associated with the cost of materials used in the…

Q: ?Which of the following costs is not related to a batch-related activity .Compliance costs .a…

A: A batch-related activity refers to the activity that is carried out in batches of units. There are a…

Q: (Appendix 11A) Which of the following would be classified as an appraisal cost on a quality cost…

A: Appraisal cost can be defined as the cost incurred by a company to keep up to the expectations of…

Q: The correct answer is: quality control

A: Auditing is a procedure of reviewing financial statements. The process of auditing is carried by an…

Q: Which of the following statements about the visual fit method is/are correct? A: The method results…

A: Answer- Visual Fit Method is a cost estimation method in which previous data on cost levels and…

Q: “To ensure unbiased cost allocations, fixed costs should be allocated on the basis of estimated…

A: Cost: It is the monetary value incurred by a company to produce a product or a service.

Q: Define standard costs and explain how standard cost information is useful formanagement by…

A: Standard costs: These are the costs which a company determines as a standard to attain its…

Q: Two potential pitfalls encountered in the design of performance indicators and measurement systems

A: Transfer price is the price quoted between the departments or companies that are related to each…

Q: Explain the implementation problems in cost estimation.

A: Cost estimation: It is the development of a defined relationship between cost object and cost…

Question

(7) (
products, which of the procedures can most likely help him?
) When the auditor want to know the change of cost-allocated method of several

A. Inspection of assets & inquiry
C. Inquiry & recalculating
B. Confirmation & inspection of documentation
D. Recalculating & observation
(8) (
) What is the level of assurance and type of opinion that can be provided on a review
engagement?
Level of assurance
Report wording
A
Reasonable
Positive
Negative
B
Reasonable
C
Limited
Positive
Limited
Negative
D
(9) Which of the following financial statement assertions is least relevant to the audit of
inventory?
A. Completeness
B. Existence
с. Оссиrence
D. Classification
(10) (
) Which of the following should the auditors obtain from the predecessor auditors
before accepting an audit engagement?
A. Analysis of balance sheet accounts.
B. Analysis of income statement accounts.
C. Information about audit fees.
D. Facts that might bear on the integrity of management.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How should one establish performance measurements? And how can they be aggregated?
In testing for lower-of-cost-or-market, the auditor is gathering evidence to support which of the following assertions? a. Accuracy. b. Rights and obligations. c. Valuation. d. Pricing.
. What is the cycle approach to auditing and what are the advantages of dividing the audit into different cycles?
Should an auditor wishing to assess the adequacy of separation of functions examine a data flow diagram or a system flowchart? Why?
Why is the reporting of segment information required? Justify your response. Why is the reporting of estimates and assumptions required? Justify your response.
Which of the following is NOT a characteristic of effective information? a. relevance b. accuracy c. summarization d. precision
Select one method an auditor can use to audit through the computer system. Explain how the method works, any risks associated with the method, and how you would justify using the method from a cost-benefit perspective.
When searching for the root cause of issues, auditors are effectively searching for the source of variation, which are often grouped into categories, which categories is not included. a. machines b. measurements c. system d. people
Briefly provide your opinion whether an auditor wishing to assess the adequacy of separation of functions examine a data flow diagram or system flowchart. Why.
What is the purpose of the client’s performance measurementsystem? How might that system be useful to the auditor?
Which of the following is not one of the main issues regarding data collection which can significantly affect precision and reliability when using regression or any other cost estimation method? Multiple Choice Time period choice. Nonlinearity. Relevant range. Data accuracy.