Listed Below Are Examples of Matters That May Be Reportable

question 58

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 provisions for the safeguarding of assets.
_____

• 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:

Market Value

The present cost at which a product or service is available for purchase or sale in an open market.

Corporations

are legal entities that are separate from their owners, providing limited liability protection, and have the ability to own assets, incur liabilities, and sell stock.

Special Purpose Equipment

Equipment that is designed and built for a specific task or function, which is not easily adaptable for other uses.

Common Stock

An equity security that denotes ownership within a corporation and grants the owner voting rights on company issues as well as eligibility to receive dividends.