Internal Controls Can NEVER Be Regarded as Completely Effective

question 67

Multiple Choice

Internal controls can NEVER be regarded as completely effective.Even if systems personnel could design an ideal system, its effectiveness depends on the:

• A) competency and dependability of the people using it.
• B) adequacy of the computer system.
• C) proper implementation by management.
• D) ability of the internal audit staff to maintain it.

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Definitions:

Quantitative Techniques

Mathematical and statistical methods used to analyze numerical data, often applied in economics, finance, and operational research to facilitate decision-making.

Nearly Identical Duration

A characteristic of two or more financial instruments whose cash flows match or are very close in terms of their time structure, minimizing interest rate risk.

Bullish Position

An investment strategy where an investor believes that a particular asset's price will rise.