Which of the Following Is a Type of Control That

question 102

Multiple Choice

Which of the following is a type of control that the PCAOB recommends the auditor to consider in evaluating whether or not the organization has sufficiently addressed fraud risk?

• A)Controls over significant,unusual transactions,particularly those that result in late or unusual journal entries.
• B)Controls over entries that relate to foreign sales.
• C)Controls over related-party transactions.
• D)Both A and C
• E)All of the above.

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Definitions:

Model Business Corporation Act

A uniform set of laws that is designed to regulate the formation, operation, and dissolution of corporations, adopted by many U.S. states to facilitate business.

Close Corporation

A corporation with a limited number of shareholders and no public shares, often operated by a few individuals with closely aligned interests.

Charter of the Corporation

A legal document issued by a governmental authority that establishes a corporation and outlines its basic terms of operation, rights, and responsibilities.

Initial Directors

Initial directors are the first members of a corporation's board of directors, appointed at the time of incorporation to serve until the first shareholders' meeting.