Tests of Controls Are Directed Toward the Control's

question 6

Multiple Choice

Tests of controls are directed toward the control's

• A) efficiency.
• B) effectiveness.
• C) cost and effectiveness.
• D) cost benefit ratio.

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Definitions:

GAAP

Generally Accepted Accounting Principles, which are a collection of commonly-followed accounting rules and standards for financial reporting.

EU

A political and economic union of 27 member states that are located primarily in Europe, aimed at facilitating economic cooperation.

SEC

The Securities and Exchange Commission, a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry, stock and options exchanges.

FASB

The Financial Accounting Standards Board, an organization responsible for establishing and improving financial accounting standards in the United States.