The True Statement Is

question 34

Multiple Choice

The true statement is:

• A) Internal controls are more important when companies grow in size and complexity.
• B) Effective internal controls are able to provide absolute assurance for an entity's management and board.
• C) Auditors have a statutory legal obligation to report on internal controls within the entity.
• D) The control environment means the auditor's overall attitude, awareness and actions regarding internal control and its importance in the entity

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Definitions:

Barriers to Entry

Barriers consisting of financial, bureaucratic, or legal hindrances that restrict the entry of new players into a market or business sector.

Monopoly Resources

Natural or created resources over which a single entity has control, limiting competition and influencing market prices.

Price Effect

The price effect is an economic term describing the impact of a change in a product’s price on its demand and supply.

Total Revenue

The total receipts a company receives from sales of goods or services before any expenses are subtracted.