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:

Debtor's Property

Assets owned by an individual or entity (debtor) that owe money to creditors, which may be subject to claims or liens.

Debtor Defaults

Occurs when a debtor fails to meet the legal obligation of debt repayment, potentially leading to legal action or loss of collateral.

Repossesses Collateral

The act of taking back possession of property used as collateral in a loan agreement, typically after a default by the borrower.

Surplus

The amount by which revenues, resources, or supplies exceed what is needed or used; in finance, it refers to profit or the amount by which income exceeds expenditures.