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:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the second party has reasonably relied on that promise to their detriment.

Unenforceable

A term describing a contract or clause that, due to legal deficiencies, cannot be executed or enforced by law.

Oral Contract

A legally binding agreement made through spoken words and commitments rather than in writing.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the party being charged to be enforceable.