Of the Following Statements About Internal Control, Which One Is

question 5

Multiple Choice

Of the following statements about internal control, which one is not valid?

• A) No one person should be responsible for the custodial responsibility and the recording responsibility for an asset.
• B) Transactions must be properly authorized before such transactions are processed.
• C) Because of the cost/benefit relationship, a client may apply control procedures on a test basis.
• D) Control activities reasonably insure that collusion among employees cannot occur.

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Definitions:

Mental Faculties

The cognitive functions of the mind, including perception, reasoning, intuition, and memory.

Mental Defect

A term previously used to describe a variety of mental disabilities or disorders, now considered outdated and insensitive. The modern usage advocates for specific diagnoses or conditions.

Law of Infants

The body of law that deals specifically with minors and their rights, responsibilities, and limitations under the law.

Necessaries

The essential goods or services required to function in society, such as food, clothing, and shelter.