Which of the Following Statements Is Correct Regarding Internal Control

question 60

Multiple Choice

Which of the following statements is correct regarding internal control?

• A)A well-designed internal control environment ensures the achievement of an entity's control objectives.
• B)An inherent limitation to internal control is the fact that controls can be circumvented by management override.
• C)A well-designed and operated internal control environment should detect collusion perpetrated by two people.
• D)Internal control is a necessary business function and should be designed and operated to detect all errors and fraud.

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Definitions:

Frontal Lobe

The part of the brain located in the front of the skull, responsible for executive functions, decision making, and controlling voluntary movements.

Parietal Lobe

A region of the brain located behind the frontal lobe, involved in processing sensory information such as touch, pain, and spatial orientation.

Conceptual Model

An abstract representation that organizes and illustrates the key concepts and the relationships among them within a field of study.

Structural Components

Fundamental parts or aspects that form the basis or framework of a system, building, or organism.