Answer:
C. Observation of the counting of inventory.
Explanation:
Risk assessment procedures involve all the steps that represent the evaluation of procedures which are company specific and not individual item specific.
These assessments are done in order to ensure the accounting procedures are fair that are followed by the company.
Thus, the observation of counting of inventory is substantative in nature and not investigating like, risk assessment test.
All other steps mentioned are part of risk assessment procedure.
Walmart’s various marketing channel relationships offer examples of different forms of a vertical marketing system.
<u>Explanation:
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In vertical marketing system, the manufacturer, the wholesale distributor and the retail distributor work together to promote and manage huge base of customers. There are three distinguished forms in vertical marketing system namely,
- Corporate- where one member among the distribution channels holds the ownership.
- Administered- where one member among the distribution channels, without any ownership stake hold and coordinates the other members
- Contractual- where independent companies club together for mutual benefit on a contract basis.
Here, the Walmart company imposes control on small producers namely Brown Betty Dessert Boutique for their mutual benefits. The Walmart has the advantage of handling the key holds from the production of the product to the selling of the product. This helps in anticipating the problems priory, making necessary changes and thereby increasing the efficiency.
When starting a small business it is very important to remember to take into account your employees point-of- view