Exhibit 5-13 Oriental Reproductions, Inc. Is a Company That Produces Handmade Carpets

question 95

Multiple Choice

Exhibit 5-13
Oriental Reproductions, Inc. is a company that produces handmade carpets with oriental designs. The production records show that the monthly production has ranged from 1 to 5 carpets. The production levels and their respective probabilities are shown below.
-Refer to Exhibit 5-13. The standard deviation for the production is

• A)4.32
• B)3.74
• C)0.374
• D)0.612

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Definitions:

Assets Safeguarded

Measures or controls implemented to protect a company’s assets from theft, damage, or misuse.

Internal Control System

A system within an organization that directs, monitors, and measures its resources and processes to achieve objectives, such as financial reliability, operational efficiency, and compliance with laws and regulations.

Control Environment

The set of standards, processes, and structures that provide the basis for carrying out internal control across the organization. It sets the tone for the importance of internal control and influences the control consciousness of its people.

Proofs And Security Measures

Proofs and security measures refer to the techniques and processes employed to verify the accuracy of financial information and protect it against theft, fraud, and other risks.