Maximum Benefit from Independent Internal Verification Is Obtained When

question 136

Multiple Choice

Maximum benefit from independent internal verification is obtained when

• A) it is made on a pre-announced basis.
• B) it is done by the employee possessing custody of the asset.
• C) discrepancies are reported to management.
• D) it is done at the time of the audit.

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Definitions:

Negative Externalities

Unintended and unfavorable side effects of an economic activity that affect third parties not involved in the activity.

Majority Voting

A voting system where decisions are made based on the preference of more than half of the votes cast, commonly used in elections and organizational decision-making.

Moderately Priced Bouquet

A flower arrangement that is priced at a level considered reasonable or average, not too expensive or too cheap.

Expensive Bouquet

Refers to a collection of flowers that has a high price, often due to its quality, rarity, or the occasion it is meant for.