An Advantage of Using Systems Flowcharts to Document Information About

question 67

Multiple Choice

An advantage of using systems flowcharts to document information about internal control instead of using internal control questionnaires is that systems flowcharts:

• A)identify internal control weaknesses more prominently.
• B)provide a visual depiction of clients' activities.
• C)indicate whether controls are operating effectively.
• D)reduce the need to observe clients' employees performing routine tasks.

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Definitions:

Equity Mutual Funds

Investment funds that pool money from many investors to purchase a portfolio of stocks, aiming to provide returns through dividends and capital gains.

Risky

An adjective describing the likelihood of losing part or all investment due to various types of investment or market risks.

Equity Growth Fund

A mutual fund that invests primarily in stocks with the goal of capital appreciation rather than income.

Sector Fund

A mutual fund that invests solely in businesses operating in a specific industry or economic sector, aiming to capture sector-specific growth.