A System of Internal Control Can Only Provide Reasonable Assurance

question 82

Multiple Choice

A system of internal control can only provide reasonable assurance, which is based on the belief that

• A)the system is infallible.
• B)the system can always detect errors and irregularities.
• C)the costs of establishing control activities should not be greater than the expected benefit.
• D)the human element is not important.

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Definitions:

National Medical Insurance

A government-provided insurance plan aimed at ensuring healthcare coverage for all citizens.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Panama Canal

A man-made waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean, significantly reducing the maritime journey time by avoiding the lengthy southern tip of South America.

Treaties

Formal agreements between countries that define and modify their mutual duties and obligations.