Which of the Following Situations Would Indicate Increased Inherent Risk

question 33

Multiple Choice

Which of the following situations would indicate increased inherent risk in the accounts payable and acquisition cycle?

• A) good quality internal controls for cash handling
• B) the use of packaged software for accounting (including accounts payable)
• C) the use of clear, standard terms when negotiating supplier discounts
• D) significant related party transactions

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Definitions:

Black Senators

African American members of the U.S. Senate; their presence in the Senate has been historically significant due to the racial barriers they've had to overcome to serve.

Political Gains

Refers to advancements or successes in the political arena, such as the election of officials from underrepresented groups, passage of progressive legislation, or shifts in public policy to be more inclusive.

Thirteenth Amendment

An amendment to the U.S. Constitution that abolished slavery and involuntary servitude, except as punishment for a crime.

Three-fifths Compromise

was a constitutional agreement that each slave would count as three-fifths of a person for population representation and taxation purposes.