Maximum Benefit from Independent Internal Verification Is Obtained When

question 23

Multiple Choice

Maximum benefit from independent internal verification is obtained when

• A)it is made on a pre-announced basis.
• B)it is done by the employee possessing custody of the asset.
• C)discrepancies are reported to management.
• D)it is done at the time of the audit.

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Definitions:

Social Regulation

Policies implemented by the government to protect public interests, including health, safety, and the environment, often affecting how businesses operate.

Repetitive Activities

Tasks or processes that are performed over and over again in a consistent manner, often within a production or manufacturing environment.

Social Regulation

Rules and standards implemented by authorities to protect public welfare, including health, safety, and the environment.

Natural Monopoly

A market condition where a single firm can supply a product or service to an entire market at a lower cost than what two or more firms could achieve, often due to high fixed or barrier costs.