Which of the Following Is an Attribute of the Internal

question 207

Multiple Choice

Which of the following is an attribute of the internal control component-monitoring of controls?

• A) Internal auditors monitor company controls to safeguard assets, and external auditors evaluate the controls to ensure that the accounting records are accurate.
• B) Monitoring of controls is the "tone at the top" of the business.
• C) Monitoring of controls is designed to ensure that the business's goals are achieved.
• D) Monitoring of controls deals with identification and assessment of business risks.

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Definitions:

Actual Overhead

The real costs incurred for overhead in production processes, as opposed to budgeted or estimated costs.

Overhead Applied

The portion of overhead costs allocated to individual products or services based on a predetermined rate.

Indirect Materials

Substances utilized during manufacturing that cannot be specifically associated with any single product, like machine lubricants.

Work in Process

Goods that are in various stages of the manufacturing process but are not yet completed, representing a component of a company's inventory.