REA Models Often Are Created Using the Six-Step Process Described

question 4

Essay

REA models often are created using the six-step process described in the text; after they are created, they are often used to create database tables.List and discuss three internal controls you would recommend implementing in the six-step process and/or the database creation process.

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Definitions:

Expected Dividend

The dividend payments that investors anticipate receiving on their shares, based on the company's past dividends or growth prospects.

Securities Analysis

A systematic approach to valuing securities, especially stocks, by studying an issuing firm’s business and industry. The securities analyst plays an important role in the financial industry.

Dividends

Sum disbursed by a business to its shareholders, indicative of a fraction of the business's profit.

Contractual Agreement

A legally binding agreement between two or more parties outlining duties, terms, and conditions that those parties have agreed upon.