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36 During the audit of the quality control area, an auditor identified that a specific...

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Accounting

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36 During the audit of the quality control area, an auditor identified that a specific product has a 3 percent failure rate when tested. The specification calls for a failure rate of less than 18 percent. Product failure might lead to customer injury and in turn lawsuits against the company. The auditor has communicated this to management. Which of the following is not an acceptable response from management with regard to this risk? 803 Multiple Choice Print Management is aware of the risk and has decided that it is acceptable Management has decided to increase the quality control activity to reduce the manufacture of unacceptable product to an acceptably low level Management has decided not to continue manufacturing this product Management has decided that the test data are unreliable and has decided not to respond to the audit findings

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