Of the Following Statements About Internal Controls, Which One Is

question 28

Multiple Choice

Of the following statements about internal controls, which one is least likely to be correct?

• A) No one person should be responsible for the custodial responsibility and the recording responsibility for an asset.
• B) Transactions must be properly authorized before such transactions are processed.
• C) Because of the cost-benefit relationship, a client may apply controls on a test basis.
• D) Control procedures reasonably ensure that collusion among employees cannot occur.

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Definitions:

Sensor

Energy conversion device used to signal a condition or state. Sensors are used to signal speed, pressure, temperature, etc.

ECU Processing

The handling and execution of tasks by the Engine Control Unit in a vehicle, encompassing functions like fuel injection and ignition timing.

Actuators

Devices that convert electrical, hydraulic, or pneumatic energy into mechanical motion to activate a mechanism.

Byte of Data

A unit of digital information in computing and telecommunications, typically consisting of eight bits, representing a single character of text or a small amount of data.