Which Is Clearly a Test of Control

question 100

Multiple Choice

Which is clearly a test of control?

• A)Confirmation to a customer of an accounts receivable balance.
• B)Examination of a sample of purchase order records for electronic,authenticated,authorization.
• C)Observing the controller's use of company owned equipment.
• D)Sending a letter to the client's attorney to determine litigation that is pending between plaintiff and the defendant.

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Definitions:

Slack

In business and project management, slack refers to the amount of time that a task in a project schedule can be delayed without causing a delay to subsequent tasks or the overall project.

Constraint

A limitation or restriction that defines the boundaries within which a problem or process must be solved or operate.

Shadow Price

The monetary value assigned to currently unlriced goods or services, reflecting the cost of foregoing their benefits.

Linear Optimization

A mathematical method that finds the best outcome, such as maximum profit or lowest cost, within a defined set of constraints.