Monitoring Activities in an Internal Control Structure Determines That

question 107

Multiple Choice

Monitoring activities in an internal control structure determines that:

• A) controls are operating as intended.
• B) external audit assurance is no longer necessary.
• C) improvements in internal control are overdue.
• D) auditing procedures are to be restricted.

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Definitions:

Productive Efficiency

A situation in which an economy or entity is producing goods and services at the lowest possible cost, utilizing all its resources efficiently.

Allocative Efficiency

A state of resource allocation where goods and services are distributed according to consumer preferences, with each good produced up to the point where the last unit provides a level of utility equal to its cost of production.

Productive Efficiency

A situation where goods and services are produced at the lowest possible cost and resources are utilized optimally.

Cost Minimization

A strategy employed by businesses to reduce production or operational costs to the lowest possible level without sacrificing quality or output.