The Text Identified Four Basic Purposes of Internal Control and Several

question 13

Multiple Choice

The text identified four basic purposes of internal control and several examples of specific controls. Which of the following demonstrates the strongest relationship between them?

• A) Safeguarding assets, bank reconciliation.
• B) Ensuring financial statement reliability, pre-numbered documents.
• C) Promoting operating efficiency, bank reconciliation.
• D) Encouraging compliance with management directives, pre-numbered documents.

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Definitions:

Cyclical

Describing fluctuations in economic activity, markets, or prices that occur in regular or predictable cycles, often related to changes in business or economic conditions.

Network

A connected system of individuals, devices, or organizations designed to distribute information or resources efficiently.

Responsive Supply Chain

A supply chain designed to swiftly adapt to market changes, customer demands, or supply variations, enhancing competitiveness and customer satisfaction.

Markdown

A reduction from the original or retail price of merchandise to increase its saleability.