Which One of the Following Represents a Control Deficiency

question 53

Multiple Choice

Which one of the following represents a control deficiency?

• A)A missing control that is required for achievement of objectives.
• B)A control that operates as designed.
• C)A control that ensures the reliability of financial reporting.
• D)A control that does not prevent immaterial errors.

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Definitions:

Working Capital

The variance between a firm's existing assets and liabilities, showcasing the immediate financial wellbeing and efficiency in operations of the company.

Capital Budgeting

The strategy of investigating and selecting long-term investments that correspond with the pursuit of amplifying shareholder wealth.

Incremental Sales

Additional sales generated by a new action or decision, beyond what would have been sold without it.

Cash Operating Expenses

Expenses that a company pays out in cash during the operating cycle, excluding non-cash expenses like depreciation.