Consider the Following Short Case as You Respond to the Next

question 25

Multiple Choice

Consider the following short case as you respond to the next nine questions: ABC Consulting's employees include management, consultants and office staff. The company accepts engagements related to internal control design and evaluation, as well as enterprise risk management plans. A customer can purchase the two services independently of one another. The office staff bills clients on a monthly basis with terms of 2 / 10, n / 30. All consulting clients must sign a contract, which is also signed by an ABC manager. One member of ABC's management team assigns at least one consultant to work with the customer until the engagement is complete. Consultants can be assigned to multiple engagements simultaneously, but every consultant must always be working on at least one engagement. Each client may have only one contract with ABC at a time.How many internal agents would be depicted in the third column of a REA model of the case?

• A)One
• B)Two
• C)Three
• D)More than three

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Definitions:

Tax Allowances

Deductions or adjustments to taxable income permitted by tax authorities, allowing individuals or businesses to reduce their taxable income.