Management Might Develop Controls Related To

question 20

Multiple Choice

Management might develop controls related to:

• A)segregation of duties between members involved in initiating,approving,implementing and recording transactions.
• B)procedures to recognize transactions.
• C)requirements for documented transaction trails after transactions are posted.
• D)physical controls that provide access to assets.

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Definitions:

Accounting Information

The data produced through the accounting process, which is used for decision-making, financial analysis, and reporting.

Economic Event

An occurrence with the potential to affect the financial status or performance of an entity, such as a transaction, market fluctuation, or regulatory change.

Financial Information System

A system that collects and processes financial data to produce reports useful for decision-making purposes.

Fair Market Value

An estimate of the price at which an asset would change hands between a willing buyer and seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.