The Ongoing Review and Evaluation of a System of Internal

question 96

Multiple Choice

The ongoing review and evaluation of a system of internal control is referred to as:

• A)Risk assessment
• B)Monitoring
• C)Segregating
• D)Communication

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Definitions:

Direct Method

A cash flow statement preparation approach that involves reporting major classes of gross cash receipts and payments.

Accounts Receivable

Outstanding payments from customers to a company for products or services already rendered.

Operating Activity

Refers to the primary revenue-generating activities of an organization, such as sales and service provision.

Direct Method

A cash flow statement reporting approach that lists major operating cash receipts and payments, used to show actual cash flows.