Which of the Following Statements About Internal Control Is Correct

question 1023

Multiple Choice

Which of the following statements about internal control is correct?

• A) There is no relationship between an entity's objectives and the components of internal control.
• B) Internal control is relevant to the entire entity, or to any of its operating units or business functions.
• C) All of the entity's objectives and related internal controls are relevant to an audit of the entity's financial
• D) An understanding of internal control relevant to each of the entity's operating units and business functions is necessary.

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Definitions:

Social Competence

The ability to handle social interactions and relationships effectively and empathetically.

Emotional Intelligence

The ability to identify, understand, and manage one's own emotions and the emotions of others.

Conflict Management

The process of identifying and addressing differences that could potentially lead to negative outcomes effectively.

Openness

A personality trait that involves the willingness to consider new ideas, experiences, and information, often associated with creativity and flexibility.