Which of the Following Conditions Must Exist for Internal Controls

question 106

Multiple Choice

Which of the following conditions must exist for internal controls to be effective?

• A)Personnel at all levels must adopt the organisation's goals, objectives and ethical standards.
• B)Policies must be communicated effectively by top management.
• C)They must be tailored to the size and nature of the business.
• D)All of the above.

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Definitions:

Credible Threat

A believable or convincing threat that influences another party's strategic decisions.

Simultaneously

Occurring at the same time or concurrently.

Credible Threat

A declaration of intended action or punishment that is believable and realistic enough to influence the behavior of others.

Equilibrium

A state in which all forces or influences are balanced, such as in a market when supply equals demand.