Which of the Following Is Not an Element of Management's

question 54

Multiple Choice

Which of the following is not an element of management's assessment process for the effectiveness of internal control?

• A) Evaluate the likelihood that failure of a control could result in a misstatement.
• B) Determining the locations and business units to include in the evaluation.
• C) Determining significant deficiencies and material weaknesses in controls.
• D) Obtaining the auditor's assessment of the internal control effectiveness.

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Definitions:

Traditional Accounting System

An accounting practice that uses manual processes and ledgers for bookkeeping without extensive technology.

Lean Principles

A set of management practices that aim to minimize waste and increase efficiency in manufacturing processes.

Inventory Shortages

Situations where the actual inventory count is less than what is recorded on the books, indicating possible issues such as theft or errors.

Volatile Times

Periods characterized by high levels of uncertainty, unpredictability, or instability, often referring to economic or financial market conditions.