Describe Three Threats in the General Ledger and Reporting System

question 65

Essay

Describe three threats in the general ledger and reporting system and identify corresponding controls for each threat.

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Definitions:

Unfinished Tables

Refers to partially completed goods, often noted in manufacturing processes where the product is not yet ready for sale.

Sunk Cost

An expenditure that has already been incurred and cannot be recovered, and should not affect future decisions.

Defective Units

Products that fail to meet quality standards or specifications and are often unsellable or subject to returns and repairs.

Salvage Company

A business specialized in saving, recovering, and selling the usable parts of damaged, inoperative, or discarded goods.