Which of the Following Is NOT an Example of an Internal

question 5

Multiple Choice

Which of the following is NOT an example of an internal verification procedure?

• A) Checking accuracy of document preparation
• B) Checking for authorisation of transactions
• C) Reviewing reports for incorrect items
• D) Accounting for numerical sequence of prenumbered documents

---

Definitions:

Specific Performance

A legal remedy in contracts where the court orders the party who breached the contract to perform the promised action rather than simply paying damages.

Liquidated Damages

Predetermined monetary compensation agreed upon by parties in a contract as a remedy for specific breaches, especially delays.

Penalty Clause

A provision in a contract that specifies a penalty to be paid by a party in the case of a breach of the contract.

Liquidated Damages

A predetermined sum agreed upon in a contract, payable as compensation for failure to perform specific acts or to fulfill certain conditions.