Which of the Following Is NOT a Principle of Internal

question 119

Multiple Choice

Which of the following is NOT a principle of internal control?

• A)Audits should always be conducted by employees internal to the organization.
• B)Responsibility for related transactions should be divided.
• C)Responsibilities should be clearly established.
• D)Assets should be insured and employees bonded.
• E)Adequate records should be maintained.

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Definitions:

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs).

Standard Deviation

A measure of the dispersion or spread of a set of values, indicating how much the values differ from the average of the set.

Coefficient Of Correlation

A statistical measure that indicates the extent to which two variables fluctuate together. A value closer to 1 or -1 indicates a stronger relationship.

Decreases

To become smaller or less in size, amount, intensity, or degree.