During the Audit of the Quality Control Area,an Auditor Identified

question 10

Multiple Choice

During the audit of the quality control area,an auditor identified that a specific product has a 3 percent failure rate when tested.The specification calls for a failure rate of less than 1.8 percent.Product failure might lead to customer injury and in turn lawsuits against the company.The auditor has communicated this to management.Which of the following is not an acceptable response from management with regard to this risk?

• A)Management is aware of the risk and has decided that it is acceptable.
• B)Management has decided not to continue manufacturing this product.
• C)Management has decided to increase the quality control activity to reduce the manufacture of unacceptable product to an acceptably low level.
• D)Management has decided that the test data are unreliable and has decided not to respond to the audit findings.

---

Definitions:

Joint Return

Joint Return is a tax filing status that allows married couples to combine their income, exemptions, deductions, and credits on a single tax return.

AGI

A computation of your earnings from your overall income, Adjusted Gross Income is employed to identify the amount of your earnings that is subject to tax.

Child And Dependent Care Credit

A tax credit offered to taxpayers for expenses related to the care of children under 13 or disabled dependents, enabling the taxpayer to work or look for work.

Dependent Child

A child who relies on another person for more than half of their support and qualifies for the potential of tax benefits for the supporting individual.