Identify to indicate whether each procedure is a preventive or detective control
a. authorizing a credit sale Preventive Detective
b. preparing a bank reconciliation Preventive Detective
c. locking the warehouse Preventive Detective
d. preparing a trial balance Preventive Detective
e. counting inventory Preventive Detective
A. preventive; B. detective; C. preventive; D. detective; E. detective
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Claire wanted to tell her employee about the seminar, but she put the flier in a stack of papers and forgot about it until after the deadline to sign up. This is an example of what type of barrier to communication?
A. Sender barrier B. Encoding barrier C. Medium barrier D. Feedback barrier E. Receiver barrier
As the acceptable level of detection risk decreases, an auditor may change the:
A. assessed level of risk of material misstatement to a higher amount. B. timing of tests of controls by performing them at several dates rather than at one time. C. nature of substantive procedures from less effective to more effective procedures. D. timing of tests of controls by performing them at an interim date rather than at year-end.
If Detroit DLX charges the same price for the delivery of its product to customers located in the states near the Great Lakes, but a different price to customers elsewhere, the company is using ________
A) psychological pricing B) promotional pricing C) zone pricing D) reference pricing E) uniform-delivered pricing
A company that produces bird houses is considering adding an ability for customers to customize the products that they order. The company should anticipate a(n) _________.
a. Increase in production volume b. Decrease in production volume c. Neither an increase nor decrease in production volume d. It is impossible to determine how production volume will be affected by this change