Internal Controls Can _______

question 4

Multiple Choice

Internal controls can _______.

• A)only include certain procedures approved by management and the auditor
• B)include any procedure used and relied upon by the client to prevent errors from occurring when processing transactions, or to detect and correct errors that may occur in these transactions
• C)include any procedure used and relied upon by the auditor to prevent errors from occurring when processing transactions, or to detect and correct errors that may occur in these transactions
• D)never be subject to senior management override

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Definitions:

Profit Centers

Sections of a business that are responsible for generating their own revenue and profit.

Information

Data that has been processed or organized in a way that adds to the knowledge of the person receiving it.

Incentives

A factor, either monetary or non-monetary, that motivates individuals to perform an action.

Division Profits

The earnings generated by a specific division or segment of a larger company, reflecting its financial performance.