Having Security Measures, Proper Authorization Channels, and Restricted Access to Assets

question 35

Multiple Choice

Having security measures, proper authorization channels, and restricted access to assets is an example of what element of internal control?

• A)Control environment
• B)Control activities
• C)Information and communication
• D)Risk assessment

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Definitions:

Operating Lease

A lease agreement that allows for the use of an asset but does not convey rights of ownership of the asset.

Financial Lease

A long-term lease agreement that allows the lessee to use an asset while essentially assuming both the risks and benefits of ownership.

Lessor

The owner of an asset in a leasing agreement. The lessor receives payments from the lessee.

Insure

The act of protecting against loss, damage, or liability through a contract with an insurance company that compensates the insured in the event of specified types of loss.