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NEW QUESTION: 1
The variable overhead expenditure variance is:
A. The difference between the actual hours worked and the standard hours produced, multiplied by the variable overhead absorption rate
B. The over or under absorbed variable overhead
C. The actual hours worked multiplied by the variable absorption rate
D. The difference between the variable overheads incurred and the flexed budget allowance for variable overheads
Answer: D

NEW QUESTION: 2
Branded pharmaceuticals industry is a(n) ______ industry.
A. defensive.
B. cyclical.
C. growth.
Answer: A
Explanation:
Demand for most health care services does not fluctuate with the economic cycle, but demand is not strong enough to be considered "growth".

NEW QUESTION: 3
During consideration of internal control in a financial statement audit, an auditor is not obligated to:
A. Understand the internal control environment and the accounting system.
B. Search for all significant deficiencies in the operation of internal control.
C. Determine whether the control activities relevant to audit planning have been implemented.
D. Perform procedures to understand the design of internal control.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. During consideration of internal control in a financial statement audit, an auditor is
not obligated to search for all significant deficiencies in the operation of internal control, but should
communicate any such situations noted to management and those charged with governance.
Choice "B" is incorrect. The auditor is required to obtain an understanding of each of the five components
of internal control, including the control environment and the (accounting) information system.
Choices "C" and "D" are incorrect. As part of planning, the auditor is required to obtain an understanding of
the design of relevant controls and to determine whether they have been implemented.

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