Which of the Following Is the Best Way to Compensate

question 23

Multiple Choice

Which of the following is the best way to compensate for the lack of adequate segregation of duties in a small organization?

• A)Disclosing lack of segregation of duties to the external auditors during the annual review.
• B)Replacing personnel every three or four years.
• C)Requiring accountants to pass a yearly background check.
• D)Allowing for greater management oversight of incompatible activities.

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Definitions:

Stockholders' Equity

The portion of the balance sheet that represents the equity or ownership interest of shareholders in a company.

Monetary Value

Monetary value represents the worth of an item, service, or asset expressed in terms of money or currency.

Net Income

The final amount a company retains as earnings after subtracting costs and taxes from its gross income.

Revenue

The total amount of money a company generates from its business activities, such as sale of goods or services, before any expenses are subtracted.