Which of These Would Not Necessarily Be Considered to Be

question 22

Multiple Choice

Which of these would not necessarily be considered to be a risk factor for potential misstatements?

• A)Segregation of duties is not practiced.
• B)An employee in the cash office was passed over for a promotion.
• C)There is intense price competition in the industry of operation.
• D)Profit margin has increased and inventory turnover days has decreased.

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Definitions:

Diseconomies Of Scale

The phenomenon where production costs per unit increase as a firm or production process increases in size, often due to inefficiencies.

Industry Demand Curve

A graphical representation of the total demand for the products or services provided by a specific industry at various prices.

Network Externalities

Benefits or costs that affect a user of a product or service, depending on the number of other users of the same or similar products or services.

NCAA

The National Collegiate Athletic Association, an organization that regulates athletes of many U.S. colleges and universities, setting eligibility criteria and organizing sports competitions.