Which of the Following Statement Is Correct Regarding Internal Control

question 10

Multiple Choice

Which of the following statement is correct regarding internal control?

• A)A well-designed internal control environment ensures the achievement of an entity's control objectives.
• B)An inherent limitation to internal control is the fact that controls can be circumvented by management override.
• C)A well-designed and operated internal control environment should detect collusion perpetrated by two people.
• D)Internal control in a necessary business function and should be designed and operated to detect errors and fraud.

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Definitions:

Perimeter

The total length around the boundary of a two-dimensional shape.

Falling Object

An object that is under the sole influence of gravity, typically described in physics with equations of motion.

Picture

A visual representation of an object, scene, or person produced on a surface.

Dimensions

Measurements that define the size or shape of an object, often used in geometry to describe figures in two or three-dimensional space.