The Internal Control Objective of 'Real' Refers to Controls in Place

question 36

True/False

The internal control objective of 'real' refers to controls in place to ensure that fictitious or duplicate transactions are not included in the books and records of the organisation.

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Definitions:

Foreign Currency Transaction

A transaction that involves the exchange of currencies or the undertaking of financial obligations denominated in a currency other than the entity’s functional currency, requiring conversion and possibly leading to foreign exchange gains or losses.

Spot Rate

The current market price of a financial instrument or commodity available for immediate purchase and delivery.

Receivable

An amount owed to a company by its customers or other parties for goods or services delivered.

SPEs

Special Purpose Entities, legal structures created to fulfill specific objectives, often used in financial transactions to isolate financial risk.