Effective and Efficient Internal Control Often Takes Up Valuable Management

question 55

True/False

Effective and efficient internal control often takes up valuable management time that could otherwise be spent on attention to revenue growth and cost controls.

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Definitions:

Receivable

An amount owed to a company by its customers or other parties for goods or services delivered.

SPEs

Special Purpose Entities, legal structures created to fulfill specific objectives, often used in financial transactions to isolate financial risk.

Reporting Entity

An entity or business that is required to prepare financial statements in accordance with regulatory guidelines.

Control

In a business context, control refers to the power to govern the financial and operational policies of an entity so as to obtain benefits from its activities.