Key Controls Are Controls

question 62

Multiple Choice

Key controls are controls

• A)over physical risks.
• B)over significant risks.
• C)on which the auditors intend to rely.
• D)designed by the audit committee to prevent management fraud.

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Definitions:

Operating Cycle

The duration between a company's purchase of inventory and the receipt of cash from accounts receivable, reflecting the efficiency of a company's cash flow.

Inventory

refers to the goods and materials a business holds for the ultimate goal of resale or production.

Credit Card

A payment card issued to users as a method of payment allowing the cardholder to borrow funds, typically at point of sale, under the condition of paying back the borrowed money plus interest.

Inventory Period

The average time it takes for a company's inventory to be sold and replaced.