Consider the following short case as you respond to the next nine questions: 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.How many external agents would be depicted in the first column of a REA model of the case?
A)Zero
B)One
C)Two
D)Three

Question

Quizplus · Accepted Answer

The first column of a REA model depicts external agents, which are entities outside the organization that interact with the organization. In this case, the only external agent is the customer.

Consider the Following Short Case as You Respond to the Next