Which of the Following Controls Are Designed to Prevent Misstatements

question 19

Multiple Choice

Which of the following controls are designed to prevent misstatements from happening (prevent controls) and / or detect and correct misstatements on a timely basis (detect controls) ?

• A)Internal controls
• B)External controls
• C)Entity-level controls
• D)Transaction-level controls

---

Definitions:

Public Sector Failure

A situation where government interventions in the economy fail to allocate resources efficiently, leading to a loss of economic welfare.

Economically Inefficient Outcomes

Situations where resources are not allocated optimally, leading to a decrease in overall welfare or a misallocation of resources that could result in lost benefits for society.

Public Choice Theory

A branch of economics that studies how economic theories and methodologies can be applied to political science, focusing on the behavior of voters, politicians, and government officials.

Government Decision Making

The process by which government bodies decide on policies, laws, and budget allocations among other official actions.