When Dealing with the Documentation of Internal Control

question 36

Multiple Choice

When dealing with the documentation of internal control,

• A) in a narrative, most questions simply require a "yes" or "no" response.
• B) questionnaires offer useful checklists to remind the auditor of the many different types of internal controls that should exist.
• C) questionnaires and flowcharts should not be used together.
• D) flowcharts fail to show the segregation of duties in the company.

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Definitions:

Market Share

The portion of total sales in a market captured by a specific company, product, or brand, usually expressed as a percentage.

Monopolistic Competition

A market structure characterized by many sellers offering differentiated products, leading to competition that is neither purely competitive nor purely monopolistic.

Oligopoly

A market structure characterized by a small number of firms dominating the market, which can limit competition and lead to higher prices.

Oligopolistic Market

A market structure characterized by a small number of large firms dominating the market, leading to limited competition and possibly collusive behavior.