A System of Internal Control

question 135

Multiple Choice

A system of internal control

• A) is infallible.
• B) can be rendered ineffective by employee collusion.
• C) invariably will have costs exceeding benefits.
• D) is premised on the concept of absolute assurance.

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Definitions:

Balance of Payments

A record of all economic transactions between the residents of a country and the rest of the world within a specific period.

Goods Deficit

A situation where a country's imports of physical goods exceed its exports, leading to a negative balance in trade for physical goods.

Exchange Rate

The value of one currency for the purpose of conversion to another, affecting international trade, investments, and economic relations between countries.

British Pounds

The currency of the United Kingdom, symbolized by £, and one of the major currencies traded worldwide.