Which of the Following Is Not an Element of Management's

question 52

Multiple Choice

Which of the following is not an element of management's assessment process for the effectiveness of internal control?

• A)Identifying financial reporting risks and related controls.
• B)Determining the locations and business units to include in the evaluation.
• C)Evaluating evidence about the operating effectiveness of ICFR.
• D)Obtaining the auditor's assessment of the internal control effectiveness.

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Definitions:

Normal Goods

Goods for which demand increases as the income of the buyer increases, and vice versa.

Income Increase

A rise in the amount of money received, especially on a regular basis, through work or investments.

Substitute

A product or service that can be used in place of another to satisfy the same want or need.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at that price.