Maximum Benefit from Independent Checks of Performance Is Obtained When

question 84

Multiple Choice

Maximum benefit from independent checks of performance 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 external audit.

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Definitions:

Valid Acceptance

An expression of agreement to the terms of an offer in contract law that results in a binding contract between the parties.

Valid Offer

A proposal made by one party to another with specific terms, intending to form a legally binding agreement if accepted.

Lucy V. Zehmer

A landmark legal case focusing on the binding nature of a contract, stemming from the sale of a farm over a drunken conversation.

Assent

Assent is the agreement or approval by a party to the terms of a contract or an arrangement, often indicated through a signature or explicit agreement.