Internal Controls Are

question 48

Multiple Choice

Internal controls are

• A)usually necessary to run the company
• B)part of the environment of the client
• C)implemented in areas where fraud risk is greatest
• D)are only necessary if audit testing is going to rely on them

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Definitions:

Business Combination

The process of merging two or more companies into a single entity to achieve operational efficiencies or strategic objectives.

Consolidated Revenues

The total income generated by a corporation and all its subsidiaries, combined to present the overall revenue figures in the financial statements.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Par Value

The nominal or face value of a share of stock or a bond as stated by the issuer, which is often minimal and has little relation to its market price.