Listed Below Are Examples of Matters That May Be Reportable

question 71

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
-Willful wrongdoing by employees or management. _____

• 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:

Surplus Goods

Items in excess of what is needed, often resulting in stockpiles or discounted sales.

Transportation Costs

are expenses involved in moving goods or people from one location to another, including fuel, labor, and maintenance of vehicles.

Free Market Economy

An economic system based on supply and demand with minimal government intervention.

Competition

A situation in which entities, individuals, or groups strive against each other to achieve a desired objective, often leading to innovation and improvement.