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:

Guiding Principle

Fundamental norms, rules, or values that represent what is desirable and positive for a person, group, organization, or community, and help it in its decision making.

Solving Problems

The method of identifying answers to challenging or intricate problems.

Algorithm

A set of rules or procedures to be followed in calculations or problem-solving operations.

Step-By-Step Procedure

A detailed series of actions or instructions laid out in order to accomplish a specific task or process.