For Public Companies in the U

question 93

Multiple Choice

For public companies in the U.S. ,which statement is correct?

• A)The auditor is responsible for the development of internal controls and the financial reporting process.
• B)Internal controls over the financial reporting process must be effective as of year-end.
• C)Internal controls over the financial reporting process are designed to assure that the internal control process of a company is effective.
• D)Effective internal control reporting provides reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes.

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Definitions:

Performance Report

A detailed report comparing budgeted data to actual data.

Budgeted Costs

Estimated financial figures for revenues and expenses set during the budgeting process for a future period.

Labour Efficiency Variance

A measure used in cost accounting to determine the difference between the actual hours worked and the standard hours planned for a task, multiplied by the standard labor rate.

Variable Overhead Efficiency Variance

A metric that measures the difference between the actual variable overhead cost incurred and the standard cost expected for the actual production level.