A Company Should Study Risks Common to Its System Prior

question 11

Multiple Choice

A company should study risks common to its system prior to deciding the mix of controls needed.High-risk characteristics that might justify the need for extensive internal controls include all of the following, except:

• A)Goods received are especially difficult to differentiate, count, or inspect.
• B)High volumes of goods are often received, or the goods are of high value.
• C)Receiving and / or record keeping are performed at one centralized location.
• D)Changes in price or vendors is frequent.

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Definitions:

Seniors

Individuals of advanced age, often defined as being over a certain age threshold, such as 65 years old.

Requirements

Conditions or capabilities needed by a user to solve a problem or achieve an objective.

Graduate

A person who has successfully completed a course of study or training, especially a person who has been awarded an undergraduate or first academic degree.

Justification

The process or reasoning behind why a claim or action is considered valid or acceptable.