Control Activities Can Be Designed to Provide Reasonable Assurance That

question 14

Multiple Choice

Control activities can be designed to provide reasonable assurance that all except which of the following will happen?

• A) Transactions will be recorded to permit preparation of financial statements.
• B) All risks will be eliminated.
• C) Access to assets will be permitted only in accordance with management's authorization.
• D) The recorded accountability for assets will be compared with the existing assets at periodic intervals.

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Definitions:

Recession

An economic downturn characterized by a significant decline in economic activity across the economy lasting more than a few months.

Educational Backgrounds

The formal schooling and training an individual has received, including degrees, diplomas, and certifications.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It necessitates the need for prioritization and choice.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.