Which of the Following Is Not a Component of Internal

question 72

Multiple Choice

Which of the following is not a component of internal control?

• A)assigning to one individual the responsibility for accounting for and custody of assets
• B)monitoring of controls via internal and external auditors
• C)risk assessment to identify risk areas
• D)effective control environment where importance of internal control is emphasized

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data points, indicating the volatility of an investment.

Portfolio

A collection of investments held by an individual or institution, including stocks, bonds, commodities, and other financial instruments.

Stock T

A hypothetical or generic stock used in financial examples or educational contexts to explain stock market concepts.

Common Stock

A type of security that represents ownership in a corporation, includes voting rights, and entitles the holder to dividends.