Which of the Following Documents Can Be Used to Assess

question 9

Multiple Choice

Which of the following documents can be used to assess risk and recommend internal controls?

• A)Systems flowchart
• B)Risk/control matrix
• C)Both systems flowchart and risk/control matrix
• D)Neither systems flowchart nor risk/control matrix

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Definitions:

Express Authority

The power granted to an agent or representative explicitly stated by the principal in a written or oral form.

Actual Authority

The express and implied powers given by a principal to an agent for carrying out specific transactions.

Principal

The primary party involved in a transaction or contract, or the amount of money originally invested or loaned, before interest.

Agent

An individual or entity authorized to act on behalf of another (the principal) in legal or business matters.