Which of the Following Statements Is Not True Regarding Internal

question 50

Multiple Choice

Which of the following statements is not true regarding internal control procedures?

• A) Internal control procedures include methods to achieve compliance with laws and regulations.
• B) Internal control procedures direct operations toward common goals.
• C) Internal control procedures are designed to safeguard company assets.
• D) Internal control procedures are not affected by the cost-benefit principle.
• E) Internal control procedures are designed to ensure reliable financial reports.

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Definitions:

Cartel

A cartel refers to an association of independent businesses or countries that collaborate to manipulate prices and limit competition for certain goods or services.

Cartel

An agreement between competing firms to control prices or exclude entry of a new competitor in a market, usually to increase market power and profits.

Formal Agreement

refers to a legally binding contract between parties that outlines specific obligations and rights.

Covert Collusion

A secret agreement between firms to fix prices, limit production, or engage in other practices to restrict competition illegally.