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:

Distinct Species

A group of organisms with common characteristics that can interbreed among themselves but not with members of other species.

Homo Sapiens

The species name for modern humans, characterized by a high degree of intelligence, complex language capabilities, and the ability to create and manipulate technology.

Homogenous Species

A term inaccurately suggesting a species is genetically or phenotypically uniform; in reality, most species exhibit significant genetic and phenotypic diversity.

Gene Flow

The movement of alleles or genes from one population to another through various mechanisms, such as migration.