Which of the Following Statements Is True in Terms of an Internal

question 87

Multiple Choice

Which of the following statements is true in terms of an internal control system?

• A)A good internal control system will help a company achieve reliable financial reporting, effective and efficient operations, and compliance with laws and regulations.
• B)An internal control system cannot be considered effective until the possibility of human error has been completely eliminated.
• C)Only large companies need to be concerned with a system of internal control.
• D)The extent of internal control activities adopted by a company must not be evaluated in terms of cost-benefit.

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Definitions:

Lack Of Control Theory

A psychological concept suggesting that individuals who feel they have little control over their life circumstances are more likely to develop mental health issues.

Artifact Theory

A concept that suggests perceptions or interpretations of data can be influenced by inherent biases or flaws in the measurement process.

Hormone Theory

A concept suggesting that hormones play a central role in determining behavior and physiological processes.

Cognitive Triad Theory

A model in cognitive therapy that focuses on an individual’s negative evaluations of themselves, their world, and their future.