Management's Report on Internal Controls Must Include Each of the Following

question 50

Multiple Choice

Management's report on internal controls must include each of the following except:

• A)a statement that management is responsible for establishing and maintaining adequate internal control over financial reporting.
• B)a statement identifying the framework management uses to evaluate the effectiveness of the company's internal control.
• C)a statement providing management's assessment of the effectiveness of the company's internal control.
• D)a statement providing management's evaluation of the company's control environment.

---

Definitions:

Direct Labor Quantity Variance

The difference between the actual hours worked and the standard hours allowed, multiplied by the standard rate, indicating efficiency in labor usage.

Overhead Volume Variance

The difference between the expected (or standard) amount of manufacturing overhead costs given a certain level of production and the actual overhead costs incurred.

Standard Direct Labor Cost

The predefined cost associated with the labor required to produce a good or service, under normal circumstances.

Payroll Taxes

Levies placed on both employers and employees, often determined as a portion of the wages that businesses provide to their workforce.