Which of the Following Statements Is True in Terms of an Internal

question 5

Multiple Choice

Which of the following statements is true in terms of an internal control system?

• A) A good internal control system will help a company achieve reliable financial reporting, effective and efficient operations, and compliance with laws and regulations.
• B) An internal control system cannot be considered effective until the possibility of human error has been completely eliminated.
• C) Only large companies need to be concerned with a system of internal control.
• D) The extent of internal control activities adopted by a company must not be evaluated in terms of cost-benefit.

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Definitions:

Original Contract

A primary agreement between parties before any amendments, modifications, or revisions.

Ethical And Equitable

These terms refer to principles and practices that are morally right and fair, ensuring justice and equality in various contexts.

Consideration

A fundamental concept in contract law that involves something of value given by both parties to an agreement as an inducement to enforce the contract.

Enforce A Contract

The legal process of compelling parties to comply with the terms of a contract through court action.