Residual risk is best defined as:
a) The risk that material error exists in the financial statements after the audit.
b) The amount of risk an organization is willing to accept in pursuit of its business objectives.
c) The internal and external risks that exist assuming there are no internal controls in place.
d) The risks that remains after management executes its risk responses.
Ans: d) The risks that remains after management executes its risk responses.
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Which distribution network design is being used when inventory is stored at the manufacturer or distributor warehouse but customers place their orders online or on the phone and then come to designated pickup points to collect their orders?
A) Manufacturer storage with direct shipping B) Manufacturer/distributor storage with customer pickup C) Distributor storage with package carrier delivery D) Distributor storage with last mile delivery
Suppose that you place $450 in a bank account each year for the next 20 years. How much would be in your bank account at the end of the twentieth year if the deposits earned an annual rate of return of 6% each year?
A) $9,540.00 B) $10,876.31 C) $14,729.44 D) $16,553.52