AOXEN

This includes verifying that transactions are recorded at the correct amounts and that any necessary adjustments, such as depreciation or impairment, have been made. Auditors test this assertion by reviewing the methods and assumptions used by management to value assets and liabilities, as well as by performing recalculations and analytical procedures. For example, they might

It is required in preparing reports for financial statements and stock valuation purposes. Variance analysis helps management identify areas where performance deviates from expectations, enabling corrective actions to improve efficiency and cost control. (b) Each component of the product should bear its own share of the total cost. Another way of calculating the marginal cost