Two Key Concepts That Underlie Management's Design and Implementation of Internal

question 23

Multiple Choice

Two key concepts that underlie management's design and implementation of internal control are

• A) costs and materiality.
• B) absolute assurance and costs.
• C) inherent limitations and reasonable assurance.
• D) collusion and materiality.

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Definitions:

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The fundamental principle of accounting that states assets equal liabilities plus owner's equity, providing the basis for double-entry bookkeeping.

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A financial statement showing a company's assets, liabilities, and shareholders' equity at a specific point in time.