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:

Fixed Calipers

Brake calipers that are mounted in a stationary position with pistons arranged on opposing sides of the rotor, applying brake pressure evenly.

Drum Brake Micrometer

A tool used to measure brake drum diameter and to check for out-of-round.

Out-of-round

A condition where a component, such as a rotor or drum, is not perfectly circular, leading to uneven wear or vibration.

Nonfloating Drum

A type of drum in machinery or equipment that is fixed in place and does not move or float axially under operation.