Strong Entity-Level Controls _______

question 34

Multiple Choice

Strong entity-level controls _______.

• A)make it less likely that transaction-level controls will operate effectively
• B)make it more likely that transaction-level controls will operate effectively
• C)generally increase inherent risk
• D)have no bearing on inherent risk

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Definitions:

ROI

Return on Investment, a metric used to evaluate the efficiency of an investment or compare the efficiency of several investments.

Investment Opportunity

A situation or venture that has the potential to generate a return on investment.

Average Operating Assets

The mean worth of resources employed in the functioning of a company throughout a given timeframe.

Sales

The transactions involving the exchange of goods or services for money, considered the primary revenue source for a business.