For a Specific Internal Control to Be Effective, Both the Preventive

question 45

True/False

For a specific internal control to be effective, both the preventive and the detective aspect of the control must exist and be interrelated.

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Definitions:

Market Analysis

The study of market trends, conditions, and characteristics to inform business decisions, often involving an examination of supply and demand, competitor strategies, and customer preferences.

Financial Projections

Estimates of future financial performance of a business, including forecasts of income, revenue, expenses, and capital requirements.

External Funding Requirement

The amount of money a company needs to raise from outside sources to finance its activities, investment, and growth.

Growth In Assets

An increase in a company's total assets over a period of time, reflecting expansion and acquisition of new assets for operations or investment purposes.