Which of the Following Factors Will Result in Control Risk

question 78

Multiple Choice

Which of the following factors will result in control risk being assessed at a higher level?

• A)Controls are well designed.
• B)There is a lack of supervision of accounting personnel.
• C)Accounting staff are well trained and educated.
• D)The control environment is operating effectively.

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Definitions:

Bond Premium Amortization

The gradual reduction over time of the amount by which a bond's purchase price exceeds its face value.

Carrying Value

Another term for book value; it's the value at which an asset is recognized on the balance sheet.

Straight-Line Method

A method of calculating depreciation of an asset where the asset's cost is reduced equally over its useful life.

Amortize Discount

The process of gradually reducing the discount on a bond over the life of the bond.