Which of the Following Is Not a Condition That Must

question 21

Multiple Choice

Which of the following is not a condition that must be met before an accountant can conduct an engagement concerning a nonpublic entity's internal control over financial reporting?

• A) Management accepts responsibility for the effectiveness of its internal control.
• B) Management has appropriately documented the internal controls.
• C) Management's evaluation of control can be supported by sufficient evidence.
• D) Management presents a written assertion about the effectiveness of its internal control.

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Definitions:

Total Pounds Needed

A quantity measurement usually used in manufacturing or production to indicate the total weight of material required.

Ending Direct Materials

The value of materials available for use at the end of an accounting period after accounting for all usage and purchases.

Direct Materials Purchases

The acquisition of raw materials used directly in the manufacturing of products, considered part of the inventory costs.

Materials Required

The raw materials and components needed for the production of goods.