What Control Procedure(s)should Be Used to Reduce the Risk of Unauthorized

question 71

Multiple Choice

What control procedure(s) should be used to reduce the risk of unauthorized disclosure of the financial statements?

• A)Multifactor authentication.
• B)Physical security.
• C)Encryption.
• D)All of the above.

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Definitions:

Asset Turnover Ratio

A measure of how efficiently a company uses its assets to generate sales revenue, calculated by dividing total sales by average total assets.

Average Total Assets

The mean value of a company's assets over a specific period, used in various financial analyses to gauge performance.

Return on Common Shareholders' Equity

A measure of the profitability of equity investments, calculated as net income divided by average common shareholders' equity, indicating how well a company uses investments to generate earnings growth.

Profit Margin

A financial ratio indicating the percentage of revenue that exceeds the cost of goods sold, showcasing how much profit is generated per dollar of sales.