Which of the Following Is NOT a Principle of Internal

question 113

Multiple Choice

Which of the following is NOT a principle of internal control?

• A) Responsibilities should be clearly established
• B) Adequate records should be maintained
• C) Responsibility for related transactions should be divided
• D) Assets should be insured and employees bonded
• E) Audits should always be conducted by employees internal to the organization

---

Definitions:

Buyers and Sellers

The participants in a market who respectively purchase and offer goods or services for trade.

Substitution Effects

The change in the consumption pattern of goods due to a change in their prices, making consumers replace more expensive items with cheaper alternatives.

Downward-sloping

A descriptor often used for demand curves, indicating that as the price of a good or service decreases, the quantity demanded increases.

Law of Demand

The principle that there is an inverse relationship between the price of a good and the quantity demanded, holding other factors constant.