The Ongoing Review and Evaluation of a System of Internal

question 96

Multiple Choice

The ongoing review and evaluation of a system of internal control is referred to as:

• A)Risk assessment
• B)Monitoring
• C)Segregating
• D)Communication

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Definitions:

Incremental Cash Flows

The additional cash flow generated by a company as a result of undertaking a new project or investment.

Operating Lease

A lease agreement for the use of an asset without transferring ownership, typically involves short-term leases of equipment or property.

Fair-Market Value

An estimate of the market value of a property or asset, based upon what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller in the market.

CICA

Canadian Institute of Chartered Accountants, an organization for accounting professionals in Canada. (Note: as of 2023, CICA has amalgamated into CPA Canada).