Which One of the Following Is NOT a Component of an Entity's

question 74

Multiple Choice

Which one of the following is NOT a component of an entity's internal control?

• A) Control risk
• B) The control environment
• C) The accounting system
• D) Control procedures

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace on investments or loans, determined by supply and demand forces.

Annual Dividend

A distribution of profits to shareholders by a corporation, typically done annually.

Growth of Dividend

The increase in the amount of dividend payments issued by a company over time, reflecting its growing profitability and cash flow.

Cumulative Voting

A voting system that allows shareholders to concentrate all their votes on a single candidate for the board of directors.