Under the Sarbanes-Oxley Act of 2002, to Whom Does the Audit

question 31

Multiple Choice

Under the Sarbanes-Oxley Act of 2002, to whom does the audit committee report?

• A) Management of the corporation
• B) External auditor
• C) Board of directors
• D) Internal audit department

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Definitions:

Direct Labor-Hours

The total hours worked directly on the manufacturing of goods.

Variable Overhead

Costs that fluctuate with changes in production volume, such as utilities and materials, affecting the cost to produce goods or services.

Direct Materials

The raw materials that are directly traceable to the production of a specific product and constitute a significant portion of the product's direct costs.

Direct Labor-Hours

The total hours worked by employees directly involved in manufacturing products or delivering services.