Risk Exposures in the General Ledger and Financial Reporting Systems

question 58

Multiple Choice

Risk exposures in the General Ledger and Financial Reporting Systems include all of the following except

• A) loss of the audit trail
• B) unauthorized access to the general ledger
• C) loss of physical assets
• D) general ledger account out of balance with the subsidiary account

Recognize the key properties of linear optimization models.

Know the different solving methods offered by the basic solver in Excel.

Understand the concept and significance of binding constraints in optimization solutions.

Understand the differences between wholesalers and retailers.

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Definitions:

Securities Act of 1933

A United States federal law enacted as a result of the stock market crash of 1929, requiring that securities sold in the United States be registered and that investors receive significant information about securities being offered.

Due Diligence Defense

A legal defense used in securities law, indicating that the defendants conducted a thorough investigation and did not find any misrepresentations or omissions.

Prospectus

A formal document that companies must publish when offering their shares to the public, detailing their business and financial status.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.