Internal Controls Can Never Be Regarded as Completely Effective

question 10

Multiple Choice

Internal controls can never be regarded as completely effective. Even if company personnel could design an ideal system, its effectiveness depends on the

• A) adequacy of the computer system.
• B) proper implementation by management.
• C) ability of the internal audit staff to maintain it.
• D) competency and dependability of the people using it.

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Definitions:

Ingroup Bias

The tendency to favor our own group.

Stereotyping

A cognitive process where individuals generalize attributes, characteristics, and behaviors to members of a particular group.

Prejudice

A preconceived opinion that is not based on reason or actual experience.

Hindsight Bias

The inclination to believe, after an event has occurred, that one would have predicted or expected the outcome.