Management Can Expect Various Benefits to Follow from Implementing a System

question 99

Multiple Choice

Management can expect various benefits to follow from implementing a system of strong internal control.Which of the following benefits is least likely to occur?

• A) reduced cost of an external audit.
• B) prevents employee collusion to commit fraud.
• C) availability of reliable data for decision-making purposes.
• D) some assurance of compliance with the Foreign Corrupt Practices Act of 1977.
• E) some assurance that important documents and records are protected.

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Definitions:

Bearer Instrument

A negotiable financial instrument that is not registered in anyone's name and can be transferred from one person to another by possession.

Two-party Instrument

A financial document or contract that involves two parties directly, typically involving a payer and a payee.

Three-party Instrument

A financial document involving three parties, typically referring to negotiable instruments where there is a drawer, drawee, and payee.

Relative Permanence

Pertains to the duration or stability of something compared with others, often indicating that it is more lasting or fixed but not permanent.