Of the Following Statements About an Internal Control System,which One

question 74

Multiple Choice

Of the following statements about an internal control system,which one is correct?

• A) The maintenance of the system of internal control is an important responsibility of the internal auditor.
• B) Administrative controls relate directly to the safeguarding of assets.
• C) Because of the cost/benefit relationship, tests of controls may be applied on a test basis in some circumstances.
• D) Well designed internal control activities always prevent collusion among employees.

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Definitions:

Mental Deficiency

A term historically used to describe a range of intellectual disabilities or cognitive impairments.

Physical Disability

Physical Disability is a condition that significantly impairs an individual's ability to perform daily tasks or movements due to physical limitations.

Contributory Negligence

A legal doctrine where a plaintiff's action may reduce or eliminate their right to recover damages if their own negligence contributed to the harm.

Last Clear Chance Doctrine

A legal principle that allows the plaintiff in a negligence case to recover damages even if partly at fault, if the defendant had the final opportunity to avoid the accident.