A System of Internal Control

question 135

Multiple Choice

A system of internal control

• A) is infallible.
• B) can be rendered ineffective by employee collusion.
• C) invariably will have costs exceeding benefits.
• D) is premised on the concept of absolute assurance.

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Definitions:

Chattel

Personal property which is movable, as opposed to real property or real estate.

Firmly Attached

Pertains to property or equipment that is fixed or securely fastened to a location or structure, often impacting legal status or taxation.

Joint Tenancy

A form of co-ownership where two or more persons hold equal shares of a property with rights of survivorship, meaning when one owner dies, their share automatically passes to the remaining owner(s).

Tenants

Individuals or entities that occupy property or land rented from a landlord and are subject to the terms of a lease.