Which of These Is Not a Principle of Internal Control

question 3

Multiple Choice

Which of these is not a principle of internal control?

• A) Separation of record keeping and custody of assets
• B) Division of responsibility for related transactions
• C) Establishing clear lines of responsibility
• D) Placing excess cash on fixed deposit to earn interest

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Definitions:

Empirical Research

A way of gaining knowledge by means of direct and indirect observation or experience.

Psychological Theories

Concepts and principles developed to explain and predict behavior and mental processes.

Trial and Error

A problem-solving method involving repeated, varied attempts which are continued until success, or until the practitioner stops trying.

Mood Stabilizer

Medication used to treat mood disorders such as bipolar disorder, helping to prevent extreme shifts in mood.