Which of the Following Is Not an Objective of Internal

question 116

Multiple Choice

Which of the following is not an objective of internal controls over financial reporting as defined by the Sarbanes-Oxley Act?

• A) Policies and procedures that pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the registrant.
• B) Policies and procedures that provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the registrant are being made only in accordance with authorizations of management and directors of the registrant.
• C) Policies and procedures that provide reasonable assurance regarding the compliance with applicable laws and regulations.
• D) Policies and procedures that provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the registrant's assets that could have a material effect on the financial statements.

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Definitions:

Temperament

The combination of mental, physical, and emotional traits of a person; natural predisposition, which is often evident from infancy.

Testosterone

The most important of the male sex hormones. Both males and females have it, but the additional testosterone in males stimulates the growth of the male sex organs in the fetus and the development of the male sex characteristics during puberty.

Assertive

Characterized by confidence and self-assurance in expressing opinions, desires, or boundaries without being aggressive.

Empathic

Having the ability to understand and share the feelings of another from their perspective.