Which of the Following Statements Is True Regarding Internal Controls

question 89

Multiple Choice

Which of the following statements is true regarding internal controls of capital and investment processes?

• A)Internal controls aimed at preventing and detecting employee fraud in capital and investment processes are not as effective.
• B)Top management fraud, rather than employee fraud, is more likely to occur.
• C)Any fraud is likely to involve manipulating capital and investment processes.
• D)Because of top management oversight, the auditor need not review these processes.

---

Definitions:

Cashier's Check

A check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier.

Non-Strategic View

An approach or perspective that does not involve long-term planning or consider the competitive positioning within a particular industry or market.

Terms of Agreement

Clauses and conditions outlined in a contract that specify the obligations, rights, and duties of the parties involved.

Outside Options

Alternatives available to negotiating parties outside of the current negotiation or deal, affecting their bargaining power.