A Condition Whereby the Design or Operation of a Control

question 21

Multiple Choice

A condition whereby the design or operation of a control does not allow management or employees,in the normal course of performing their assigned functions,to prevent,or detect and correct misstatements on a timely basis is called a(an)

• A) Deficiency.
• B) System design weakness.
• C) Unacceptable reportable condition.
• D) Audit alert item.

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Definitions:

Cost Ledger

A ledger that keeps track of the costs of production, including direct materials, direct labor, and manufacturing overhead.

Jobs Shipped

The completed work projects or orders that have been sent to the customer.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold.

Factory Overhead Costs

All indirect costs associated with manufacturing, including utilities, rent, and salaries for employees not directly involved in production.