Management Is Responsible for Implementing Effective Controls to Control Risks

question 27

Multiple Choice

Management is responsible for implementing effective controls to control risks identified in a risk assessment. Which of these would not be considered to impact on management's risk assessment?

• A) expanding foreign exchange operations.
• B) changing the external auditor.
• C) new personnel.
• D) new technology.

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Definitions:

Markup

The extra charge added to the purchasing cost of items to encompass both overhead expenses and profit, setting the sale price.

Contribution Margin

The excess of sales over variable costs; the excess of manufacturing margin over variable selling and administrative expenses.

Bottleneck Hour

A term used in production and manufacturing to describe the hour or period where the flow of processes slows down due to a limitation in output capabilities, impacting overall productivity.

Bottleneck

A point of congestion in a production system that occurs when workloads arrive too quickly for the production process to handle.