One Characteristic of an Effective System of Internal Control Is

question 65

True/False

One characteristic of an effective system of internal control is competent, reliable, and ethical personnel.

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Definitions:

Operating Performance

A measure of a firm's efficiency in managing its core business operations, often evaluated using metrics such as operating margin and revenue growth.

Accrual Accounting

A method of accounting that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Economic Performance

A measure of how well an entity manages its resources to produce goods and services, often evaluated through factors like GDP growth, employment levels, and productivity.

Earnings Process

The series of steps undertaken by a company to report income from its operations, culminating in the publication of financial statements.