Which of the Following Is Not an Application Control

question 74

Multiple Choice

Which of the following is not an application control?

• A)Preprocessing authorization of sales transactions
• B)Reasonableness test for unit selling price of sale
• C)Post-processing review of sales transactions by the sales department
• D)Logging in to the company's information systems via a password

---

Definitions:

Red Herring

A preliminary prospectus distributed to prospective investors in a new issue of securities.

Preliminary Prospectus

An initial document provided by a securities issuer that details the investment offering for potential investors but is not yet approved by the relevant authority.

Seasoned Equity Offering (SEO)

A sale of equity shares by a company that has already gone public through an additional public offering.

Green Shoe Option

A clause contained within the underwriting agreement of an IPO that allows underwriters to purchase up to an additional 15% of shares at the offering price.