Which of the following suggests a weakness in the internal control environment?
a. the firm has an up-to-date organizational chart
b. monthly reports comparing actual performance to budget are distributed to managers
c. performance evaluations are prepared every three years
d. the audit committee meets quarterly with the external auditors
C
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A signed release to substitute a new mortgagor for the original mortgagor is called:
a. A novation b. A mortgagee c. An assumption d. An estoppel certificate
In income-producing property valued by the capitalization approach, if the property taxes increase and all else remains equal, the property value will:
A: Increase more than the amount of the annual tax increase; B: Decrease more than the amount of the annual tax increase; C: Decrease an amount equal to the amount of the annual tax increase; D: Increase an amount equal to the amount of the annual tax increase.