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:

Cost Apportionment

The allocation of shared or indirect costs to different cost centers or cost objects based on a fair and reasonable basis.

Direct Method

A type of cost allocation that directly assigns expenses to specific cost objects, such as departments or products, without any intermediation.

Personnel Department

The department within an organization that is responsible for hiring, training, and managing employees.

Assembly Department

A division within a manufacturing company where assembled components are put together to form a finished product.