Section 404 requires management to make a statement identifying the control framework used to conduct their assessment of internal controls. Discuss the options in selecting a control framework


The SEC has made specific reference as to COSO as a recommended control framework. PCAOB's Auditing Standard No. 5 endorses the use of COSO as the framework for control assessment. Although other suitable frameworks have been published, any other framework used should encompass all of COSO's general themes.

Business

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All of the following are important controls over credit memos except:

A. proper segregation of duties to ensure that sales discounts taken were earned. B. credit memos should be supported by a receiving document for returned goods. C. credit memos should be approved by someone other than whoever initiated it. D. proper segregation of duties between access to customer records and authorizing credit memos.

Business

How are notes valued and accounted for under the authoritative guidance?

Business

Which of the following is not considered a "cost" of extending credit to customers?

A. The increased sales resulting from the extension of credit B. The possibility of unpaid accounts C. Keeping the records for accounts receivable D. The opportunity cost of lost interest

Business

Each of the four production sites ships ten units to each of the four customers. What is the cost of this initial trial shipment plan?

A) $1960 B) $2080 C) $2120 D) $2230

Business