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.

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Definitions:

Hypothesis

A supposition or proposed explanation made on the basis of limited evidence as a starting point for further investigation, often used as a precursor to more detailed experiments or studies.

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A category of housing that is affordable to people with a household income below a certain level, typically determined by government policies.

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A statistical measure that reflects the fraction or percentage of the total number of cases that falls into a particular category.