Which Statement Is True Concerning the Documentation of Internal Control

question 43

Multiple Choice

Which statement is true concerning the documentation of internal control?

• A) Documentation should be sufficient to support the design and operating effectiveness of internal controls.
• B) Documentation requirements are standardized by the PCAOB.
• C) Documentation of disbursements require paper and electronic documentation.
• D) Documentation of all transaction controls should be tested on an annual basis.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by increasing heart rate, constricting blood vessels, and raising blood pressure.

Parasympathetic Nervous System

The division of the autonomic nervous system that calms the body, conserving its energy.

Central Nervous System

The central nervous system consists of the brain and spinal cord, serving as the primary processing center for the entire nervous system, and controls most functions of the body and mind.

The Brain

The central organ of the nervous system, responsible for processing sensory information, regulating bodily functions, and enabling cognition and emotions.