The Employee in Charge of Authorizing Credit to the Company's

question 25

Multiple Choice

The employee in charge of authorizing credit to the company's customers does not fully understand the concept of credit risk.This lack of knowledge would constitute:

• A)a deficiency in operation of internal controls.
• B)a deficiency in design of internal controls.
• C)a deficiency of management.
• D)not constitute a deficiency.

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Definitions:

Hot Air Balloon

is a lighter-than-air aircraft consisting of a bag, known as an envelope, which contains heated air that provides lift, allowing it to float in the atmosphere.

Fly

An insect of the order Diptera, known for its ability to fly and its role in various ecological processes such as pollination and decomposing organic matter.

Atmosphere

The layer of gases surrounding Earth, protecting it from extreme temperatures and harmful space energies.

Gaseous Layer

A stratum of the atmosphere composed of gases, such as the ozone layer, which provides protection from the sun's harmful ultraviolet radiation.