According to the Standards, Which of the Following Statements Best

question 332

Multiple Choice

According to the Standards, which of the following statements best describes the required content of the chief audit executive's (CAE) report to senior management and the board on the internal audit activity (IAA) ?

• A) The CAE must report on significant risk exposures, control issues, and governance issues.
• B) The CAE must report on policies, procedures, and best practices of the IAA.
• C) The CAE must report on quality assurance techniques, statistical analysis methods, and other analytical processes used.
• D) The CAE must report on auditors' continuing education activities, staffing changes, and any outsourcing to external parties.

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Definitions:

Raw Materials

The basic materials from which products are manufactured or made.

Quantity Variance

The difference between actual quantity of material or labor used in production and the expected quantity, often leading to cost variations.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating labor and overhead costs.

Variable Overhead

Costs that change with the level of production or business activity, including materials and labor that fluctuate with output.