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:

Testamentary Capacity

The minimum age required to write a legal will and be of sound mind.

Testamentary Capacity

The legal and mental ability of an individual to make or alter a valid will.

Holographic Will

A will entirely handwritten, dated, and signed by the testator, sometimes acceptable without witnesses in some jurisdictions.

Testator

A person who writes a will.