Which of the Following Statements Regarding a System of Internal

question 135

Multiple Choice

Which of the following statements regarding a system of internal control is false?

• A) Effective internal control systems provide complete assurance against the occurrence of material frauds and embezzlements.
• B) Internal control systems depend largely on the competency and honesty of people.
• C) Because internal control systems have a cost, management should evaluate the cost/benefit of each control plan.
• D) The development of an internal control system is the responsibility of management.

---

Definitions:

Psychological Aggression

Hostile social interaction or behavior that involves mental or emotional harm rather than physical.

Work Performance

The assessment of an employee's effectiveness in fulfilling job responsibilities and tasks.

Drug Testing

The process of using medical or technical methods to determine whether a person has used the drug substances.

Illegal Drugs

Substances whose manufacture, possession, sale, or use is prohibited by law due to their potential for abuse and harm.