Which of the Following Is Not a Type/category of Control

question 31

Multiple Choice

Which of the following is not a type/category of control activities?

• A) Adequate separation of duties (useful for making sure that individuals who authorize transactions are different from those who execute them)
• B) Adequate documents and records (documents and records are the physical objects by which transactions are entered and summarized and can be the audit trail by which auditors can investigate wrongdoings)
• C) Proper authorization of transactions and activities (most common controls in e-business include passwords, firewalls, digital signatures, and biometrics)
• D) Use of internal auditors

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Definitions:

Operating Expenses

Expenditures that a business incurs as a result of performing its normal business operations.

Rent Revenue

Income earned from leasing out properties or equipment.

Cost of Goods Available

The total inventory cost of goods that a company has available for sale at the beginning of an accounting period, including purchases made during the period.

Net Purchases

Net purchases are the total purchases made by a business after subtracting any returns, allowances, and discounts from the gross purchases.