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:

Insubordination

The act of deliberately disobeying or refusing to follow the orders or directions of a superior authority within an organizational context.

Face-Saving

Actions or strategies aimed at preserving one's dignity or reputation in the face of potential embarrassment or shame.

In-Group

A social group to which an individual identifies as being a member, often characterized by a sense of belonging and identity.

Individualism

An ideology supporting the precedence of individual liberties over centralized authority or societal regulation.