Which of the Following Situations Is Not the Result of a Weakness

question 2

Short Answer

Which of the following situations is not the result of a weakness in or lack of internal controls?
A. Financial statements are misstated because individuals were able to update financial information beyond that needed to perform their job functions.
B. A sales order is placed on back-order, but is never filled or canceled.
C. Earnings per share are misstated due to a spreadsheet error.
D. The vendor bills an amount different than the amount entered on the purchase order.

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Definitions:

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, like lease payments and wages.

Units

A measure of quantity, such as items produced, hours worked, or products sold, used in various contexts including accounting and inventory management.

Scatter Diagram

A graphical representation using dots to show the relationship between two sets of data, helping identify any correlation trends.

Break-Even Point

The point at which total revenues equal total expenses, meaning there is no profit or loss, and the business has covered all its costs.