Management Often Uses Internal Controls in the Inventory Process

question 94

Multiple Choice

Management often uses internal controls in the inventory process

• A)Because the inventory process is highly susceptible to fraud.
• B)Because this makes evidence gathering easier for the auditor.
• C)Due to the large number of transactions in the process.
• D)This statement is not true.Management does not use internal controls in the inventory process.

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Definitions:

Acquire a New Customer

The process of attracting and converting prospects into someone who makes a purchase and becomes a client of the business.

Existing Customer

An individual or business that has previously purchased goods or services from a company, distinguishing them from new or potential customers.

Frederick Reichheld

A business strategist best known for his work on customer loyalty, including the development of the Net Promoter Score (NPS) as a measure of customer loyalty and satisfaction.

Customer Repurchase Rates

The frequency or likelihood with which a company's customers buy its products or services again.