In Order to Achieve the Objective of Managing Risk, Management

question 66

Multiple Choice

In order to achieve the objective of managing risk, management should establish control structures that include, at a minimum:

• A)Accounting internal controls.
• B)Accounting internal controls, IT controls, corporate governance, enterprise risk management, and IT governance.
• C)IT controls, IT governance, corporate governance, and accounting internal controls.
• D)IT controls and accounting internal controls.

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Definitions:

Costly

Involving high expenses; describing something that requires significant financial outlay.

Periodic Inventory Systems

Periodic Inventory Systems is an inventory management method where inventory levels are updated and physical counts are conducted at specific intervals, typically at the end of an accounting period.

FIFO

An inventory valuation method (First In, First Out) where the oldest inventory items are recorded as sold first.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, often used in inventory valuation and grading.