Internal Controls Can NEVER Be Regarded as Completely Effective

question 15

Multiple Choice

Internal controls can NEVER be regarded as completely effective. Even if systems personnel could design an ideal system, its effectiveness depends on the:

• A) adequacy of the computer system.
• B) competency and dependability of the people using it.
• C) ability of the internal audit staff to maintain it.
• D) proper implementation by management.

---

Definitions:

Carpool

An arrangement where several individuals travel together in one vehicle, especially to work or school, to save costs and reduce traffic congestion.

Tax Rates

The percentage at which an individual or corporation is taxed.

Stock Options

Financial instruments that give employees the right to buy a company's shares at a predetermined price, often used as a form of employee incentive.

Long-Term Capital Gains

Profits from the sale of an asset held for more than a year, typically taxed at a lower rate than regular income.