A General Rule That Should Be Followed When Developing Control

question 9

Multiple Choice

A general rule that should be followed when developing control procedures for a company's assets is:

• A)The cost of the control procedure will likely exceed the procedure's benefit
• B)The procedure should not be designed and implemented unless an asset's cost exceeds $5,000
• C)The more liquid an asset is, the greater the risk of its misappropriation
• D)The procedure should not be designed and implemented in situations where a risk assessment has been previously performed

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Definitions:

Opening Balance

The opening balance is the amount of funds in an account at the start of a new accounting period, carried over from the end of the previous period.

New Account

The initial setup or registration of an account in a financial system or online service.

Account Options

Various choices available to users for setting up, managing, and customizing their financial accounts within a software or service.

Edit Account

Making changes to the details or settings of an account within a system.