Which of the following is the essential purpose of the external audit function?

a) determination of whether the client's financial statement assertions are fairly stated in accordance with gaap.
b) examination of individual transactions to certify as to their validity assurance of the consistent application of correct accounting procedures detection of fraud.
c) detection of fraud.
d) assurance of the consistent application of correct accounting procedures.

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget.the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead.a total of 119,300 units, using 478,000 direct labor hours, were produced during the year.actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.