Define control risk.
What will be an ideal response?
Control risk is the risk that the system of internal controls will not prevent fraud or material errors in the financial statements.
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All of the following are goals of an adjustment message except to A) ?rectify the wrong, if one exists
B) ?regain the confidence of the customer. C) ?demonstrate why your company is superior. D) promote future business.
The term "tax law" includes
A) Internal Revenue Code. B) Treasury Regulations. C) judicial decisions. D) All of the above.
The minimum level of inventory that a firm wants to keep on hand at all times is referred to as:
A) the base level. B) safety stock. C) the opportunity cost. D) the reorder point. E) keiretsu.
A company had average total assets of $970,000. Its gross sales were $1,114,000 and its net sales were $925,000. The company's total asset turnover equals:
A. 1.05. B. 0.87. C. 0.95. D. 1.10. E. 1.20.