The Basic Concept of Internal Control That Recognizes the Cost

question 22

Multiple Choice

The basic concept of internal control that recognizes the cost of internal control should not exceed the benefits expected to be derived is known as:

• A)Reasonable assurance.
• B)Management responsibility.
• C)Limited liability.
• D)Management by exception.

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Definitions:

Probability Density Function

A mathematical function that describes the likelihood of different possible outcomes in a continuous random variable.

Exponential Distribution

A continuous probability distribution that is used to model the time between events in a Poisson point process.

Poisson Model

A statistical model used to predict the number of events occurring within a fixed interval of time or space, assuming events occur with a known constant rate and independently of the time since the last event.

Exponential Random Variable

A type of continuous random variable often used to model the time between events in a process with a constant rate.