To answer the next question, consider the following partial REA model in the context of the case: ABC Consulting's employees include management, consultants and office staff. The company accepts engagements related to internal control design and evaluation, as well as enterprise risk management plans. A customer can purchase the two services independently of one another. The office staff bills clients on a monthly basis with terms of 2 / 10, n / 30. All consulting clients must sign a contract, which is also signed by an ABC manager. One member of ABC's management team assigns at least one consultant to work with the customer until the engagement is complete. Consultants can be assigned to multiple engagements simultaneously, but every consultant must always be working on at least one engagement. Each client may have only one contract with ABC at a time. If Box A is labeled "assign employees," Box B could be labeled:
A)Management
B)Consultants
C)Complete engagement
D)Any of the above

Question

To answer the next question, consider the following partial REA model in the context of the case: ABC Consulting's employees include management, consultants and office staff. The company accepts engagements related to internal control design and evaluation, as well as enterprise risk management plans. A customer can purchase the two services independently of one another. The office staff bills clients on a monthly basis with terms of 2 / 10, n / 30. All consulting clients must sign a contract, which is also signed by an ABC manager. One member of ABC's management team assigns at least one consultant to work with the customer until the engagement is complete. Consultants can be assigned to multiple engagements simultaneously, but every consultant must always be working on at least one engagement. Each client may have only one contract with ABC at a time.  If Box A is labeled "assign employees," Box B could be labeled:
A)Management 
B)Consultants 
C)Complete engagement 
D)Any of the above

Quizplus · Accepted Answer

Box A is labeled "assign employees," which suggests that it refers to the process of assigning consultants to engagements. Therefore, Box B should be labeled with the group of employees who are being assigned, which in this case is the consultants. Choice A (Management) is incorrect because while a member of management does assign consultants to engagements, they are not the employees being assigned in Box A. Choice C (Complete engagement) is incorrect because it does not refer to a specific group of employees. Choice D (Any of the above) is incorrect because only one correct option exists.

To Answer the Next Question, Consider the Following Partial REA