Which of the Following Is Not a Topic That Requires

question 24

Multiple Choice

Which of the following is not a topic that requires special consideration by management during management's internal control assessment process and by the auditor during the audit of internal control?

• A)Multiple locations and business units.
• B)Service organizations.
• C)The role of the auditor in internal control.
• D)Safeguarding assets.

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Definitions:

Economic Profits

Profits that exceed the opportunity costs of all resources used by a firm, including both explicit and implicit costs.

Accounting Profits

The financial gain calculated by subtracting total explicit costs from total revenue, as recorded in the financial statements.

Explicit Costs

Costs that involve direct monetary payment by a business to purchase or maintain resources.

Usury Law

Legal regulations that set maximum interest rates that can be charged on loans to protect consumers against excessively high rates.