Internal Controls That Are Likely to Prevent the Client from Including

question 5

Multiple Choice

Internal controls that are likely to prevent the client from including as a business expense those transactions that primarily benefit management or other employees rather that the entity being audited satisfy the control objective that

• A) acquisitions are correctly valued.
• B) existing acquisitions are recorded.
• C) acquisitions are correctly classified.
• D) recorded acquisitions are for goods and services received.

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Definitions:

Ethics Competency

The ability to recognize ethical issues, make reasoned ethical judgments, and implement decisions in a manner consistent with established ethical standards.

Stakeholder Ethics

The principles and standards that guide how a business should act towards its stakeholders to be considered ethical.

Johnson and Johnson

A multinational corporation known for producing pharmaceuticals, medical devices, and consumer packaged goods.

Credo

A statement of the beliefs or aims that guide someone's actions, often used to describe a company's guiding principles.