The Primary Purpose for the Development of Standards by the Criteria

question 27

Multiple Choice

The primary purpose for the development of standards by the Criteria of Control Committee was to ________.

• A)provide guidance for companies developing best practice control systems
• B)provide systems criteria,similar to GAAP in accounting,for reporting on controls
• C)provide detailed tests of controls for audits of financial statements
• D)provide clarity on who is responsible for controls

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Definitions:

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by the party to be charged, to prevent fraud and perjuries.

Limited Partner

An investor in a partnership who has limited liability to the extent of their investment in the partnership and does not actively manage the business.

Sue

A legal action where an individual or entity brings a lawsuit against another in a court of law.

Certificate of Limited Partnership

A legal document that formalizes the establishment of a limited partnership and outlines its terms.