Internal Controls Can Be Detective Controls That

question 45

Multiple Choice

Internal controls can be detective controls that

• A)stop something management does not want to happen from occurring.
• B)identify fraudulent activities that have already occurred.
• C)do not quantify fraudulent activities.
• D)indicate when something that management wanted to happen occurred.

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Definitions:

Core Competency

Fundamental strengths or unique advantages that an organization possesses, distinguishing it from competitors and driving sustainable competitive advantage.

Insourcing

The practice of assigning tasks or projects to personnel within the organization instead of outsourcing to external entities.

Offshoring

The practice of relocating business processes or production to a foreign country to reduce costs.

Subcontracts

Secondary contracts that are assigned by a primary contractor to third parties to perform part of the work originally contracted.