Monitoring,the Fifth Component of Internal Control,involves

question 6

Multiple Choice

Monitoring,the fifth component of internal control,involves

• A) assessing the quality of internal controls over time and taking corrective actions if necessary.
• B) studying the methods used and records established to identify, assemble, analyze, classify, record, and report the organization's transactions.
• C) maintaining accountability for the financial structure (i.e., assets and liabilities) of the organization.
• D) assessing and managing the risks that affect the organization's objectives.

Understand the definition and importance of ethics as behavioral ideals and moral principles.

Identify what constitutes an ethical duty and what does not.

Recognize the importance of lawful behavior in religious expressions within a free society.

Distinguish between ethical questions and other types of inquiries.

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Definitions:

Cost-Benefit Analysis

An organized method for assessing the positives and negatives of various alternatives, aimed at finding the optimal solution that maximizes benefits and maintains savings.

Pollution Rights

Permits or allowances that authorize the holder to emit a certain amount of a pollutant, used in regulatory approaches to manage environmental impacts.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.