The Basic Concept of Internal Control That Recognizes the Cost

question 22

Multiple Choice

The basic concept of internal control that recognizes the cost of internal control should not exceed the benefits expected to be derived is known as:

• A)Reasonable assurance.
• B)Management responsibility.
• C)Limited liability.
• D)Management by exception.

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Definitions:

Festinger

Leon Festinger was a social psychologist known for his theory of cognitive dissonance, which describes the discomfort felt when holding conflicting beliefs, attitudes, or behaviors.

Psychology Text

A written or digital publication concerning the study of the mind and behavior, often used for educational purposes.

Cognitive Dissonance

A psychological state that describes the uncomfortable feeling when a person holds two or more conflicting cognitions, beliefs, attitudes, or values at the same time.

Operant Conditioning

A type of learning in which the consequences of behavior are manipulated so as to increase or decrease the frequency of an existing response or to shape an entirely new response.