Which of the Following Statements About Internal Control Is Correct

question 6

Multiple Choice

Which of the following statements about internal control is correct?

• A)The establishment and maintenance of internal control is an important responsibility of the internal auditor.
• B)Properly maintained internal control reasonably ensures that collusion among employees cannot occur.
• C)The cost-benefit relationship is a primary criterion that should be considered in designing internal control.
• D)Exceptionally strong internal control is enough for the auditor to eliminate substantive tests on a significant account balance.

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Definitions:

North American Free Trade Agreement

A trilateral trade agreement between Canada, Mexico, and the United States designed to reduce trade barriers and increase economic activity among these nations.

Canada

A country in North America known for its vast landscapes, multicultural population, and as being the second-largest country in the world by total area.

Mexico

A country in the southern portion of North America known for its rich history, diverse cultures, and significant economic activities.

European Union

A political and economic union of 27 member states located primarily in Europe, aimed at facilitating economic cooperation, trade, and policy harmonization.