A Company Should Study Risks Common to Its System Prior

question 32

Multiple Choice

A company should study risks common to its system prior to deciding the mix of controls needed.High-risk characteristics that might justify the need for extensive internal controls include all of the following, except:

• A)Goods received are especially difficult to differentiate, count, or inspect.
• B)High volumes of goods are often received, or the goods are of high value.
• C)Receiving and/or record keeping are performed at one centralized location.
• D)Changes in price or vendors are frequent.

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Definitions:

Alcohol

A chemical compound commonly found in beverages such as beer, wine, and spirits, known for its psychoactive effects and potential for abuse.

Health Promotion Model

A theory that describes the multidimensional nature of persons as they interact within their environment to pursue health.

Behavioral Outcomes

The observable effects or results of specific behaviors or actions.

Behavior-specific Cognition

Thoughts and beliefs that influence how individuals behave in specific situations, impacting decision-making and actions.