Internal Controls Are Implemented in Order to Give Perpetrators the Impression

question 39

True/False

Internal controls are implemented in order to give perpetrators the impression that the risk of being caught is low.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership of a fraction of a corporation, entitling the holder to a share of the company's profits.

Retained Earnings

Refers to the portion of net income left over for the business after it has paid out dividends to its shareholders.

Net Income

The profit a company generates after all expenses, taxes, and costs have been subtracted from total revenue.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or stock.