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.

---

Definitions:

Raw Material Cost

The expenditure incurred for the raw ingredients or basic materials that are converted through manufacturing processes into goods or services.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Labor

The body of persons engaged in work or employment, especially manual or physical work.

Materials

The physical substances from which objects are made, available in different forms and used for various purposes in production.