An Advantage of Using Systems Flowcharts to Document Information About

question 89

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 whether segregation of duties prevent collusion.
• B) Provide a visual depiction of the entity's activities.
• C) Indicate whether controls are operating effectively.
• D) Reduce the need to observe the entity's employees performing routine tasks.

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Definitions:

Repurchase

The act of a company buying back its own shares from the marketplace, which can affect the stock price and shareholder equity.

Initial Margin

The upfront collateral required to open a position in the futures or derivatives market.

Shares

Units of ownership interest in a corporation or financial asset, representing a portion of the company's capital.

Initial Margin

The portion of the purchase price that an investor must deposit when buying securities on margin.