If the Controls Necessary to Satisfy Any One of the Objectives

question 52

Multiple Choice

If the controls necessary to satisfy any one of the objectives are inadequate, the likelihood of errors related to that objective:

• A) may be decreased if management is aware of the poor controls.
• B) is indeterminate.
• C) may be increased if the controls for other objectives don't mitigate it.
• D) is increased, regardless of the controls for the other objectives.

---

Definitions:

Sole Proprietorship

A sole proprietorship is a form of business owned and run by one individual, where there is no legal distinction between the owner and the business.

Unlimited Liability

A legal structure in which owners are personally responsible for all of the company's debts and liabilities without limit.

Limited Liability

A legal structure where a company's owners are protected from personal liability for the company's debts or liabilities.

Limited Liability

Refers to a legal structure where a company's owners are not personally liable for the company's debts or liabilities.