Which of the Following Factors Is Not Relevant When Assessing

question 33

Multiple Choice

Which of the following factors is not relevant when assessing identified internal control deficiencies?

• A) Weaknesses in the control environment.
• B) The absence of a material misstatement in the financial statements.
• C) Volume of transactions affected by the deficiency.
• D) Effectiveness of oversight/governance.

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Definitions:

Total Revenue

The overall amount of money earned by a business from the sale of its goods or services, calculated as the product of price times quantity sold.

Economic Profits

Profits exceeding the opportunity costs of a firm, representing earnings beyond the breakeven point.

Economic Costs

The total value of all resources used to produce a good or service, including both explicit and implicit costs.

Accounting Profit

The difference between total revenue and explicit costs; it does not account for implicit costs, unlike economic profit.