What are the components of audit risk?
Inherent risk is associated with the unique characteristics of the business itself; control risk is the likelihood that the control structure is flawed because controls are absent or inadequate; and detection risk is the risk that auditors are willing to take that errors will not be detected by the audit.
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Cost of goods sold represents
a. Expired costs during a period and is reported on the income statement. b. Unexpired costs and is reported on the balance sheet as an asset. c. The cost of goods that will be purchased during the next operating cycle and is reported on the balance sheet as an asset. d. Expired costs and is reported on the balance sheet as an expense.
A cost of quality report compares current period quality costs in specified categories to
a. last year's quality costs. b. current period budgeted quality costs. c. total quality costs for the period. d. both a and b.
A proposal represents a legal contract
Indicate whether the statement is true or false
For the decision-making process in an organization, those who ________ a decision must understand the choice and must be committed to its successful implementation.
A. create B. finalize C. make D. implement E. influence