Which of the Following Statements About Internal Control Is Correct

question 958

Multiple Choice

Which of the following statements about internal control is correct?

• A) Properly maintained internal control reasonably ensures that collusion among employees cannot occur.
• B) The establishment and maintenance of internal control is an important responsibility of the internal auditor.
• C) Exceptionally strong internal control is enough for the auditor to eliminate substantive tests on a significant account balance.
• D) The cost-benefit relationship is a primary criterion that should be considered in designing internal control.

---

Definitions:

Hypervigilant

An enhanced state of sensory sensitivity accompanied by an exaggerated intensity of behaviors whose purpose is to detect threats.

Anxiety Attacks

Abrupt onset of intense fear or discomfort, where an individual may feel heart palpitations, dizziness, and panic, often without a clear trigger.

Major Depression

A psychiatric disorder characterized by persistent feelings of sadness, loss of interest, and a lack of pleasure in activities, severely impacting daily functioning.

Longitudinal Studies

Research studies that follow the same subjects over a period of time, noting development or changes.