During a Review of a Small Business Entity's Internal Control

question 69

Multiple Choice

During a review of a small business entity's internal control system, the auditor discovered that the accounts receivable clerk approves credit memos and has access to cash. Which of the following controls would be most effective in offsetting this weakness?

• A)The owner reviews errors in billings to customers and postings to the subsidiary ledger.
• B)A controller receives the monthly bank statement directly and reconciles the checking accounts.
• C)The owner reviews credit memos before they are recorded.
• D)The controller reconciles the total of the detailed accounts receivable accounts to the amount shown in the ledger.

Distinguish between different types of mergers and their implications under antitrust law.

Understand the intent and objectives of antitrust laws.

Analyze the significance of the Herfindahl index in assessing market power and concentration.

Identify the interpretation differences in antitrust law through structuralist and behavioralist perspectives.

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Definitions:

Marginal Benefit

The additional benefit obtained from consuming one more unit of a product or service.

Marginal Benefit

The additional benefit received from consuming one more unit of a product or service.

Total Benefit

The overall advantages or gains received from a good or service, including both tangible and intangible elements.

Football Games

Organized sporting events involving two teams playing football (soccer in some countries) under a set of rules to score goals against each other.