Listed Below Are Examples of Matters That May Be Reportable

question 94

Multiple Choice

Listed below are examples of matters that may be reportable conditions. Indicate the nature of each event by using the following code letters:
Deficiencies in Internal Control Design
Failures in the Operation of Internal Control
-Inadequate procedures for appropriately assessing and applying accounting
principles.
_____

• A)Failures in the Operation of Internal Control
• B)A system fails to provide complete and accurate output consistent with the

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Definitions:

Sales

Transactions where goods or services are provided in exchange for payment.

Accounting Cycle

The process of recording and processing all financial transactions of a company, from when the transaction occurs, to its inclusion in the financial statements.

Merchandising Company

A business entity that purchases finished products and sells them to consumers without changing the form or nature of the goods.

Service Company

A business that generates revenue through the provision of services rather than selling physical products.