Helen Found That the Expense Reports Were Not Properly Approved

question 63

Multiple Choice

Helen found that the expense reports were not properly approved while the senior accounts payable clerk was on vacation in July.Helen decided to perform a test of control on the authorization of expense reports for all the months except for July,which she will test substantively.Helen is allowed to do this because

• A)the authorized expense reports for July are not material.
• B)it would not be cost beneficial to test the entire population substantively.
• C)the authorizations for the month of July are not representative of the population as a whole.
• D)compensating controls exist in the payroll reconciliation process.

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Definitions:

Cournot Equilibrium Price

A concept in oligopoly theory where each firm chooses its quantity to maximize profit, assuming the other firms' quantities remain fixed, leading to a stable market price.

Constant Unit Cost

A situation where the cost to produce one unit of a good remains the same, regardless of the total quantity produced.

Demand Function

A mathematical relationship that expresses the quantity of a good or service demanded at various prices.

Newspaper Prices

The cost at which newspapers are sold to consumers, which can influence demand and circulation numbers.