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:

Reactivity

A measure of how readily a substance undergoes a chemical reaction with other substances.

Primary Iodides

Organic compounds where an iodine atom is bound to a primary carbon, typically involved in nucleophilic substitution reactions.

Nucleophilicity

A measure of the ability of a chemical species to donate an electron pair to an electrophile, thus forming a chemical bond.

Hydroxylic Solvents

Solvents that contain -OH groups and can participate in hydrogen bonding, affecting solubility and reaction outcomes.