A Good System of Internal Control

question 24

Multiple Choice

A good system of internal control:

• A)Urges adherence to prescribed managerial policies
• B)Insures profitable operations
• C)Eliminates the need for an audit
• D)Requires the use of non-computerized systems
• E)Is not necessary if the company uses a computerized system

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Definitions:

American Federalism

A system of government in which power is divided between a national (federal) government and various state governments.

Allocation of Responsibilities

The process of distributing tasks, duties, and powers among different levels of government or among departments within an organization.

Dual Federalism

A political theory wherein state and national governments are seen as distinct entities providing separate services, limiting the power of the national government.

Founding

The act of establishing or creating something, such as a nation, organization, or institution.