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:

Flowchart

A diagrammatic representation used to illustrate a sequence of actions or steps in a complex system or process.

Decision Points

Critical moments within a process where a choice must be made that will affect the outcome.

Linear Regression

A statistical method used to model the relationship between a dependent variable and one or more independent variables by fitting a linear equation to observed data.

Bar Charts

A graphical representation of data using rectangular bars of varying lengths, indicating different values or categories.