The Goal of Detective Internal Controls Is to Reduce Loss

question 44

True/False

The goal of detective internal controls is to reduce loss of cash due to employee error or theft.

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Definitions:

Suppliers of Capital

Entities or individuals that provide financial resources to other entities in exchange for financial returns.

Contradictory Goals

Objectives within an organization or project that are at odds with each other, making it difficult or impossible to achieve them simultaneously.

Holding Period

The duration of time an investment is held by an investor, impacting tax treatment and investment strategy.

Second Stage

The second stage usually refers to an intermediate or development phase in a process, project, or lifecycle, where initial foundations have been built upon but final objectives are not yet reached.