The Practice of Monitoring Activities Within the Internal Control System

question 151

Multiple Choice

The practice of monitoring activities within the internal control system is likely to be carried out by each of the following groups except

• A)external auditors.
• B)internal auditors.
• C)the board of directors.
• D)managers.

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Definitions:

Production Increases

The rise in the number of goods and services produced by a company or country, often indicative of economic growth.

Variable Costs

Costs that vary directly and proportionally with the level of production or sales volume, such as raw materials and direct labor costs.

Fixed Costs

Charges that stay the same, no matter the production or sales figures, such as rental fees, employee salaries, and insurance premiums.

Variable Utilities Cost

Expenses for utilities such as electricity and gas that vary in proportion to a company’s level of operation or production activity.