According to IIA Guidance, Which of the Following Statements Is

question 421

Multiple Choice

According to IIA guidance, which of the following statements is true regarding the reporting of results from a quality assurance and improvement program review of the internal audit activity?

• A) A report on the results of the assessment is issued upon completion, and progress on implementing recommended improvements must be reported monthly.
• B) The results are reported upon completion in confidence directly to the board, and management is advised only of the recommendations and improvement action plans.
• C) The results are shared with the board and management upon completion, and monitoring of recommended improvements must be reported at least annually.
• D) The results are communicated upon completion to the board and management, but action plans for recommended improvements do not have to be reported.

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Definitions:

Production Costs

The total expenses incurred in the process of manufacturing or producing goods, including labor, materials, and overhead costs.

Conversion Costs

Costs incurred during the transformation of raw materials into finished products, comprising of direct labor and manufacturing overhead.

Weighted-Average Method

A cost accounting method that calculates the cost per unit of inventory by considering both the cost of existing inventory and the cost of new inventory acquired, weighted by their respective quantities.

Process Costing System

is used in manufacturing where production is continuous, and costs are assigned to processes or departments, then averaged over units produced.