An Operating Deficiency Occurs When a Control Fails to Prevent

question 45

True/False

An operating deficiency occurs when a control fails to prevent or detect a material misstatement.

Differentiate between programmed and non-programmed decision solutions.

Identify the factors that influence decision-making under constraints (e.g., time, information, political considerations).

Recognize the impact of cognitive biases on decision-making.

Distinguish between different problem types based on the clarity of the existing and desired states.

---

Definitions:

Chart of Accounts

A structured list of all the financial accounts in the general ledger of a company.

Two-digit Numbering

Two-digit Numbering is a numerical system that uses two digits to identify or categorize items, often used for coding purposes in various contexts.

Accounts Payable

Funds that a company owes to its suppliers for products or services that have been delivered but remain unpaid.

Journalizing

The act of recording business transactions in the journal, forming the initial step of the accounting cycle.