Internal Controls Are Not Designed to Provide Reasonable Assurance That

question 90

Multiple Choice

Internal controls are not designed to provide reasonable assurance that

• A) all frauds will be detected.
• B) transactions are executed in accordance with management's authorization.
• C) the company's resources are used efficiently and effectively.
• D) company personnel comply with applicable rules and regulations.

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Definitions:

Internal Locus Of Control

The belief that one's actions and efforts directly influence the outcomes and events in their life.

Growth Need Strength

The intrinsic desire or motivation of an individual to achieve personal development or fulfill their potential.

Job Satisfaction

The level of contentment and positive feelings an individual has towards their job, often influenced by factors like work environment and personal achievements.

Halo Effect

A cognitive bias that causes one's impression of a person, brand, or product in one domain to positively influence one’s evaluation in other domains.