Which One of the Following Statements Regarding Internal Control Is

question 120

Multiple Choice

Which one of the following statements regarding internal control is false?

• A)It is not possible to design a system of internal controls that is foolproof.
• B)A well-designed system of internal controls should be the goal of every organization whether for profit or not-for-profit.
• C)Separation of duties is the easiest control activity to implement in small companies.
• D)It is easiest to implement effective internal controls in large companies which are able to devote substantial resources to those systems.

Grasp the principles of electronic banking and its impact on banking practices and customer security.

Identify and explain the legal implications of issuing, dishonoring, and payment of checks according to the Uniform Commercial Code.

Understand the mechanisms and conditions for issuing stop-payment orders on checks.

Analyze the consequences of forgery and the responsibilities of banks and account holders in cases of fraudulent checks.

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Definitions:

Residual Standard Deviation

A measure of the amount by which an entity's observed values differ from the predicted values, indicating the precision of estimates in regression models.

Index Model

A financial model that describes the return of a security or portfolio as a function of the return of the market index, plus a residual effect unique to the security.

CAPM

CAPM, or the Capital Asset Pricing Model, is a formula that describes the relationship between the expected return of an investment and market risk.

Expected Inflation

The anticipated rate at which the general level of prices for goods and services will rise over a period of time.