Which of the Following Suggests a Weakness in the Internal

question 69

Multiple Choice

Which of the following suggests a weakness in the internal control environment?

• A) the firm has an up-to-date organizational chart
• B) monthly reports comparing actual performance to budget are distributed to managers
• C) performance evaluations are prepared every three years
• D) the audit committee meets quarterly with the external auditors

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Definitions:

Parity Ratio

A ratio that compares two quantities to determine if they are equal, often used in economics to compare the value of different items.

Prices Received

The amount of money that sellers receive for their goods or services, often considered in the context of market dynamics and economic analysis.

Farmers

Individuals engaged in agriculture, raising living organisms for food or raw materials, often on a farm or rural setting.

Percent

A unit of measure used to express a proportion or a fraction of a whole, represented as a part of one hundred.