Consider the Following Short Case as You Respond to the Next

question 23

Multiple Choice

Consider the following short case as you respond to the next question: SPC Corporation sells computer security software. They maintain their AIS using general ledger software; data files are backed up twice a day. Sales staff can access the customer database, inventory files and general ledger, as well as sales-related documents such as invoices and sales orders. Newly hired sales staff members at SPC receive the company procedures manual which explains the process used to complete the steps in the sales / collection process. To minimize costs, SPC designates up to five sales staff members each month who can do credit checks for all new customers in addition to processing sales. SPC bills its clients monthly and uses the balance forward method of accounting for receivables; all cash receipts from clients are processed using a lockbox procedure. The lockbox firm's fee is 3% of all collections. SPC's accounting department estimates bad debts at the end of each fiscal year; they are normally about 1% of total sales.Internal control weaknesses for SPC are indicated by which of the following?

• A)Sales staff access to the AIS
• B)Paying a fee to a lockbox firm
• C)Estimating bad debts using total sales
• D)All of the above

Recognize the need for fair and non-discriminatory selection practices in compliance with equal employment opportunity laws.

Understand the procedures required to comply with employment-related laws, such as the Immigration Reform and Control Act.

Understand the concepts and applications of various measures of central tendency (mean, median, mode) and their strengths and weaknesses.

Comprehend how to conduct basic calculations for descriptive statistics, including rounding procedures.

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Definitions:

Violent Criminal

An individual who commits acts of violence or aggression as part of their criminal behavior.

Resocialization

Resocialization is the process by which individuals undergo a significant change in norms, values, attitudes, or behaviors through deliberate influence, as in a new organizational culture or rehabilitation program.

Initiation Rite

A cultural practice or ceremony that marks the entry or transition of an individual into a new role, status, or social group.

Institutional Ritual

Ceremonies or practices that are regularly observed within an institution, organization, or community to affirm identity and values.