Of the Following Statements About an Internal Control, Which One

question 9

Multiple Choice

Of the following statements about an internal control, which one is not valid?

• A)No one person should be responsible for the custodial responsibility and the recording responsibility for an asset.
• B)Transactions must be properly authorised before such transactions are processed.
• C)Because of the cost-benefit relationship, a client may apply control procedures on a test basis.
• D)Control procedures reasonably ensure that collusion among employees cannot occur.

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Definitions:

Task Performance

The execution or accomplishment of a specific work or activity, often measured against predefined standards.

Middle-Class White

Refers to individuals of European descent who fall within the middle socioeconomic stratum of society, typically characterized by moderate levels of income and education.

African American Child

A child of African descent growing up in the United States, facing unique cultural, societal, and developmental experiences.

Heritability Ratio

A statistic that estimates the proportion of observed variance in a particular trait among individuals in a population that can be attributed to genetic differences.