What distinguishes accounting tolerance analysis from materiality thresholds? What distinguishes accounting tolerance analysisfrom materiality thresholds?(I) Both concepts mean exactly the same thing(II) Tolerance permits specific variances whilemateriality addresses significance(III)Tolerance applies only to manufacturing(IV) Materiality deals only with errors

Explanation of Accounting Tolerance Analysis: Accounting tolerance analysis is a systematic approach…

Answered: What distinguishes accounting tolerance…

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter14: Auditing It Controls Part I: Sarbanes-oxley And It Governance

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Define the following terms: (a) performance materiality, (b) tolerable misstatement, (c) clearly trivial.
Q.Why might an analyst examining variances in the production area look beyond that business function for explanations of those variances?
Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances. Select one: True False
Controllability has little to do with whether a cost is fixed or variable. Select one: True False
Explain how the high-low method is used for cost estimation. What, if any, are the limitations of this approach to cost estimation?
Describe the Taguchi quality loss function, and relate it to robust quality.
What are the six characteristics of a good performance measurement system?
During the control function, the measurements taken of the performance must be accurate enough to see _______________________________. only positive results deviations and variances the primary focus only the negative results
Which statement is incorrect concerning the constraint on relevant and reliable information? * A. Information may be relevant but so unreliable in nature or representation that its recognition may be potentially misleading. B. The balance between benefit and cost is a pervasive constraint which means that the benefits derived from the information should exceed the cost of providing it. C. If there is undue delay in the reporting of information, it may lose its relevance and reliability. D. In achieving a balance between relevance and reliability, the overriding consideration is how best to satisfy the economic decision-making needs of users.
What causes an unfavorable variance?
What two factors must be considered when breaking down a variance into its components?

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What distinguishes accounting tolerance analysis from materiality thresholds? (I) Both concepts mean exactly the same thing (II) Tolerance permits specific variances while materiality addresses significance (III)Tolerance applies only to manufacturing (IV) Materiality deals only with errors