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:

Interchangeable Parts

Interchangeable parts are components that are made to specifications that ensure they are so nearly identical that they will fit into any assembly of the same type, reducing manufacturing complexity and allowing for easier repair of mechanical systems.

Labor Surplus

A situation in which the supply of workers exceeds the demand for their services, often leading to unemployment and lower wages.

Economic Depression

A long-term downturn in economic activity characterized by high unemployment, low consumer spending, and business failures.

Pre-Industrial Artisan

A skilled craftsperson who manually produces goods or provides services, traditionally working within a small-scale, labor-intensive process prior to industrialization.