Which of the Following Is the Correct Definition of "Control

question 51

Multiple Choice

Which of the following is the correct definition of "control deficiency"?

• A) A control deficiency exists if the design or operation of controls does not permit company personnel to prevent or detect misstatements on a timely basis.
• B) A control deficiency exists if one or more deficiencies exist that adversely affect a company's ability to prepare external financial statements reliably.
• C) A control deficiency exists if the design or operation of controls results in a more than remote likelihood that controls will not prevent or detect misstatements.
• D) A control deficiency exists if the design or operation of controls results in a more than probable likelihood that controls will prevent or detect misstatements.

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Definitions:

Least-squares Regression

A statistical technique that identifies the optimal fitting line by reducing the sum of the squared vertical deviations of the data points from that line.

Cost Formula

A mathematical equation used to calculate the total cost of production by combining fixed costs, variable costs per unit, and the number of units produced.

Activity Data

Information regarding the actions or operations within a process, often used in activity-based costing to allocate costs more accurately.

Management

The process of planning, organizing, leading, and controlling resources within an organization to achieve its objectives effectively and efficiently.