Which One of the Following Is Not a Fundamental Control

question 42

Multiple Choice

Which one of the following is not a fundamental control element the auditor would expect to find in place for all cash processing systems?

• A)Segregation of duties
• B)Electronic payments
• C)Authorization of transactions
• D)Periodic internal audits

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Definitions:

Fixed Costs

Expenses that are constant in total, regardless of changes in the volume of activity within a relevant period.

Total Fixed Cost

Total fixed cost is an accounting term describing the sum of all expenses within a company that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Cost Per Unit

A cost that changes with the level of output or sales, directly proportional to the amount of goods or services produced.

Earnings Before Interest And Taxes

Also known as EBIT, it measures a company's profitability before deducting interest and income tax expenses.