Which of the Following Statements Is Correct Regarding Internal Control

question 60

Multiple Choice

Which of the following statements is correct regarding internal control?

• A)A well-designed internal control environment ensures the achievement of an entity's control objectives.
• B)An inherent limitation to internal control is the fact that controls can be circumvented by management override.
• C)A well-designed and operated internal control environment should detect collusion perpetrated by two people.
• D)Internal control is a necessary business function and should be designed and operated to detect all errors and fraud.

---

Definitions:

Personal History

The unique compilation of events, experiences, relationships, and circumstances that have shaped an individual's life.

Recognition

The cognitive process of identifying or acknowledging something as previously seen, known, or experienced.

Stored Images

Mental representations or memories of visual information that are retained in the brain and can be recalled or imagined.

Declarative Memory

A type of long-term memory responsible for storing information that can be consciously recalled, such as facts and events.