An Internal Control System Can Be Circumvented By

question 67

Multiple Choice

An internal control system can be circumvented by:

• A)collusion,encryption and management override.
• B)collusion,management override and segregation of duties.
• C)collusion,management override and human limitations.
• D)nothing,if it is a good internal control system.

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Definitions:

Measurement Date

The specific date at which the fair value of assets and liabilities is determined for accounting purposes.

Unobservable Inputs

Inputs for which market data are not available and that are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability.

Fair Value Hierarchy

A system that prioritizes the inputs used in the valuation of assets and liabilities for financial reporting purposes.

Equity Instrument

is a financial instrument that evidences ownership interest in an entity, such as shares of common stock.