Which of the Following Statements Is True Regarding Internal Controls

question 89

Multiple Choice

Which of the following statements is true regarding internal controls of capital and investment processes?

• A)Internal controls aimed at preventing and detecting employee fraud in capital and investment processes are not as effective.
• B)Top management fraud, rather than employee fraud, is more likely to occur.
• C)Any fraud is likely to involve manipulating capital and investment processes.
• D)Because of top management oversight, the auditor need not review these processes.

---

Definitions:

"Old-Fashioned" Leadership

A style of leadership characterized by traditional approaches, such as top-down decision-making and autocratic management practices.

Leadership as a Responsibility

The concept that leadership involves not just authority and decision-making but also accountability, ethical conduct, and a commitment to acting in the best interests of the group or organization.

Directive Behaviours

Actions of a leader that provide clear instructions, expectations, and guidance to their subordinates.

Assertive

Characterized by confident and forceful behavior, enabling individuals to express their thoughts, beliefs, and feelings in an honest and direct manner.