In Terms of an Effective Internal Control System, the Practice

question 15

Multiple Choice

In terms of an effective internal control system, the practice of issuing identification cards to employees assists:

• A) clear establishment of responsibility lines.
• B) maintenance of effective records.
• C) separation of duties.
• D) physical protection of sensitive assets.

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Definitions:

Uncertainty

Being in a situation where knowledge is constrained, preventing accurate depiction of the present condition, foreseeing an upcoming result, or determining various possible results.

Programmed Situation

A scenario or environment designed or predetermined to follow a specific sequence of events or operations.

Certainty

The condition of being sure about something or having no doubt.

Risk

The potential for losing something of value or the possibility of an adverse outcome, often quantified in terms of probability and impact.