Shawn Is an Accountant at LNT Corporation

question 24

Multiple Choice

Shawn is an accountant at LNT Corporation.He maintains the company's accounting data on his computer's local hard drive, but does not back it up on any regular schedule.LNT Corporation's risk is most related to which purpose of internal control?

• A)Safeguarding assets
• B)Ensuring financial statement reliability
• C)Encouraging compliance with management directives
• D)Properly backing up data every day

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Definitions:

True Assertion

A claim or statement that accurately represents the facts and is correct.

Fraudulent Misrepresentation

A false statement made knowingly or recklessly with the intent to deceive, leading another to enter into a contract.

Innocent

Relates to the state of not being guilty of a crime or other wrong act.

Negligent

The failure to take reasonable care to avoid causing injury or loss to another person, leading to liability for any harm resulted from such careless actions.