Which of the Following Would Not Be an Entity Level

question 81

Multiple Choice

Which of the following would not be an entity level control that might address the risk of fraud?

• A)controls over significant,unusual transactions,particularly those that result in late or unusual journal entries
• B)controls over journal entries and adjustments made in the period-end reporting process
• C)controls over related party transactions
• D)controls related to significant management activities

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Definitions:

Competitive Market

A market structure characterized by many sellers and buyers, free entry and exit, and products that are similar but differentiated.

Going Price

The current market rate at which a particular good, service, or commodity can be bought or sold.

Market

A system or arena in which commercial dealings are conducted, or where supply meets demand.

Equilibrium Quantity

The level of output at which demand and supply in the market balance perfectly, setting the stage for stable prices unless external factors intervene.