The Component of Internal Control That Includes the Formal Procedures

question 7

Multiple Choice

The component of internal control that includes the formal procedures for reporting control deficiencies is:

• A)Monitoring.
• B)Information and communication.
• C)Risk assessment.

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Definitions:

Opportunity Cost

The price paid for not choosing the next most favorable option when deciding or picking between different possibilities.

Term Deposit

A bank deposit with a fixed term and typically a fixed rate of interest, where withdrawal can only occur after the term ends without penalty.

Holding Cash

The practice of keeping money in the form of physical currency as a store of value or for transactions.

Money Demand Curve

A graphical representation showing the relationship between the quantity of money people want to hold and the interest rate, under the assumption that all other determinants of demand are unchanged.