Which of the Following Control Activities Are Useful in Reducing

question 37

Multiple Choice

Which of the following control activities are useful in reducing the risk of fraud?

• A)All sales returns should be authorized by sales management
• B)Goods should be received only with a proper sales return authorization
• C)An independent count of goods returned should be recorded on a receiving report
• D)The duties of authorizing sales returns and receiving goods should be combined

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability in a dataset, often used to quantify the risk of a financial instrument.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where supply equals demand.

Supply Curve

A graphical representation of the relationship between the price of a product and the quantity of the product that a supplier is willing and able to supply, holding all other factors constant.