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:

Construction Planning

The process of outlining the steps, resources, and timelines needed to complete a construction project.

Rewarded

Recognized, typically with a gesture of appreciation or a prize, for an achievement or good behavior.

Classical Approach

A traditional method or theory in a specific discipline, often emphasizing foundational or universally recognized principles.

Motivation

The psychological processes that arouse and direct goal-directed behavior.