Which of the following controls is least likely to be relevant to a financial statement audit?

Last Updated on February 2, 2022 by Admin 3

Which of the following controls is least likely to be relevant to a financial statement audit?

  • Procedures that prevent the excess use of materials in production. 
  • Policies that relate to compliance with income tax regulations.
  • Use of computer passwords to limit access to data files.
  • Generation of production statistics used to evaluate variances.
Explanation: 
Choice “A” is correct. Procedures to reduce inefficiency on the production line relate to operational objectives, and not necessarily to financial reporting objectives.
Choices “B”, “C”, and “D” are incorrect. Compliance with income tax regulations, use of passwords to limit data access, and generation of reports to facilitate variance analysis are all important controls related to financial reporting.
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments