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A)Describe the Three Basic Concepts (Assumptions)underlying the Study of Internal

question 39

Essay

A)Describe the three basic concepts (assumptions)underlying the study of internal control and assessment of control risk.B)Describe the inherent limitations of internal control.


Definitions:

Par Value

The nominal or face value of a share of stock or a bond as stated by the issuer.

Stated Capital

The portion of a corporation's share capital that has been formally allocated for issuance and recorded in the company's financial statements.

Revised Act

is an updated version of a legislative act that incorporates amendments or corrections to the original text, aiming to clarify or improve the law.

Articles of Incorporation

A document filed with a state governmental body to legally document the creation of a corporation, detailing basic information such as its name, purpose, and structure.

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