C17 Exam Questions and Answers

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C17 - Market Pricing - Conducting a Competitive Pay Analysis

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Suppose that an entity has paid one of its liabilities t ice during the year in error The effects of this mistake would be?
A. Assets, net income, and equity are unaffected
B. Assets Liabilities, and equity are understated.
C. Assets and profit and equity} are understated, and liabilities are overstated.
D. Assets and liabilities are understated.
Answer: D
When a liability is paid, an entry debiting accounts payable and crediting cash is made. If an entity erroneously pays a liability twice, the accounts payable and cash accounts will be understated by the amount of the liability. Hence, assets and liabilities will be understated.

Which of the following BEST facilitates the development of a comprehensive information security policy?
A. Key performance indicators (KPIs)
B. References to known industry standards
C. An adequately funded information security budget
D. An established internal audit program
Answer: C

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