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:

Approach-avoidance Conflict

A psychological struggle experienced when an individual is attracted to and repelled by the same goal or option.

Negative Alternatives

Options in decision-making that are less desirable or have potential negative outcomes.

Intergroup Conflict

Intergroup conflict occurs among groups in an organization.

Different Teams

Groups composed of individuals who bring diverse skills, perspectives, and roles to work towards a common goal or project.