Which of the Following Is Not a Report That OMB

question 20

Multiple Choice

Which of the following is not a report that OMB Circular A-133 requires?

• A) A report that includes an opinion on whether the financial statements are presented in accordance with GAAP.
• B) A report that includes an opinion on whether the schedule of Federal awards is presented fairly and is consistent with the financial statements.
• C) A report on the entity's internal controls over financial reporting and its major programs.
• D) A report that other auditor's findings of errors/misrepresentations have been addressed and corrected.

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Definitions:

Variable Manufacturing Overhead

Indirect production costs that fluctuate with the level of output, including utilities and supplies that vary with production volume.

Labor Rate Variance

The difference between the actual hourly labor rate and the standard rate, multiplied by the number of hours worked during the period.

Overhead Rate Variance

Overhead Rate Variance is the difference between the actual overhead costs incurred and the overhead costs allocated based on a predetermined rate.

Variable Overhead Efficiency Variance

The difference between the actual hours taken to produce an item and the standard hours expected, multiplied by the standard variable overhead rate.