Which of the Following Control Activities Should Be Taken to Reduce

question 17

Multiple Choice

Which of the following control activities should be taken to reduce the risk of incorrect processing in a newly installed computerized accounting system?

• A)Segregation of duties.
• B)Ensure proper authorization of transactions.
• C)Adequately safeguard assets.
• D)Independently verify the transactions.

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Definitions:

Implied Demand Uncertainty

The anticipated variation in customer demand, influencing inventory levels, production planning, and capacity decisions.

Forecast Error

The difference between actual demand and forecasted demand, indicative of the accuracy of demand forecasting efforts.

Marketing and Sales Strategy

The comprehensive plan comprising tactics and methods used by a business to promote, sell, and distribute its products or services.

Strategic Fit

The alignment between an organization's strategy and its external environment, as well as its internal resources and capabilities.