Key Controls for the Acquisition and Expenditures Process That Are

question 20

Multiple Choice

Key controls for the acquisition and expenditures process that are often used by management to prevent or detect misstatements in the financial statements are

• A)limitation of duties
• B)separation procedures
• C)documented transaction trails
• D)department reconciliations
• E)physical controls that limit access to assets
• F)both A and B
• G)both C and E

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Definitions:

Ethics Codes

Written guidelines issued by organizations to their members to help them conduct their actions in accordance with its primary values and ethical standards.

Primary Duty

The main or most important obligation or responsibility that an individual or organization is expected to perform.

Reasonable Diligence

The level of effort and care expected from a person in a given situation, characterized by prudence, responsibility, and attentiveness.

Model Rule 3.3

A professional conduct rule for attorneys in the U.S., stipulating that a lawyer must not knowingly make false statements to a tribunal or fail to correct false statements made by the lawyer or the client.