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Cost estimation is the process of estimating the relationship between costs and cost drivers. Methods used to estimate costs include account analysis, engineering method, high-low method, and all of the above. In an engagement to perform agreed-upon procedures, an auditor carries out procedures agreed upon by the auditor and entity to report factual findings. The report from agreed-upon procedures is restricted to parties who agreed to the procedures and does not provide assurance.

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19 views

QW

Cost estimation is the process of estimating the relationship between costs and cost drivers. Methods used to estimate costs include account analysis, engineering method, high-low method, and all of the above. In an engagement to perform agreed-upon procedures, an auditor carries out procedures agreed upon by the auditor and entity to report factual findings. The report from agreed-upon procedures is restricted to parties who agreed to the procedures and does not provide assurance.

Uploaded by

Minie Kim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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The learning curve in cost estimation is a good example of:

A. non-linear cost behavior. C. simple regression.

B. machine-intensive production. D. a random variable. Bobadilla

30. Cost estimation is the process of

A. estimating the relationship between costs and the cost drivers that cause those costs.

B. documenting costs in terms of direct and indirect costs.

C. summarizing past costs into fixed and variable components.

D. all of the above. Bobadilla

31. Which of the following methods is used to estimate costs?

A. Account analysis C. Engineering method

B. High-low method D. All of the above

. In an engagement to perform agreed –upon procedures, an auditor is engaged to

a. Use accounting expertise as opposed to auditing expertise to collect, classify, and summarize financial
information.

b. Carry out those procedures of an audit to which the auditor and the entity and any appropriate third
parties have

agreed and to report on factual findings.

c. Provide a moderate level of assurance that the information is free of material misstatement.

d. Provide a high, but not absolute level of assurance that the information is free of material
misstatement.

23. Which of the following is true of the report based on agreed-upon-procedures?

a. The CPA provides the recipients of the report limited assurance as to reasonableness of the
assertion(s) presented in

the financial information.

b. The report states that the auditor has not recognized any basis that requires revision of financial
statements.
c. The report is restricted to those parties who have agreed to the procedures to be performed.

d. The report should state that the procedures performed are limited to analytical procedures and
inquiry.

24. According to Philippine Standard on Auditing, the procedures employed in doing compilation are:

a. Designed to enable the accountant to express a limited assurance.

b. Designed to enable the accountant to express a negative assurance.

c. Not designed to enable the accountant to express any form of assurance.

d. Less extensive than review procedures but more extensive than agreed-upon procedures.

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