Which of the Following Statements Is Not True Regarding Internal

question 87

Multiple Choice

Which of the following statements is not true regarding internal control procedures?

• A)Internal control procedures are designed to ensure reliable financial reports.
• B)Internal control procedures are designed to safeguards company assets.
• C)Internal control procedures direct operations toward common goals.
• D)Internal control procedures include methods to achieve compliance with laws and regulation.
• E)Internal control procedures are not affected by the cost-benefit principle.

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Definitions:

Causality

The relationship between cause and effect where one variable causes the change in another.

Multiple Regression

An approach in statistics where multiple predictors are used to estimate the outcome of a target variable.

Path Analysis

A specialized type of structural equation modeling used to describe directed dependencies among a set of variables, suitable for analyzing complex causal relationships.

Causality

The concept that an event (the cause) directly leads to another event (the effect) through a causal relationship.