Which of the Following Statements Regarding Internal Controls Systems Is

question 102

Multiple Choice

Which of the following statements regarding internal controls systems is false?

• A)Effective internal control systems provide complete assurance against the occurrence of material frauds and embezzlements.
• B)Internal control systems depend largely on the competency and honesty of people.
• C)Because internal control systems have a cost, management should evaluate the cost/benefit of each control plan.
• D)The development of an internal control system is the responsibility of management.

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Definitions:

Continuance

A legal term referring to the postponement of a court proceeding or trial to a later date.

Arbitration Costs

The expenses associated with resolving disputes through arbitration, including fees for arbitrators, administration, and sometimes legal representation.

Federal Rules

Regulations and procedures established by federal law that govern legal processes in U.S. federal courts.

Arbitration Agreement

A contract in which parties agree to resolve disputes through arbitration rather than litigation in courts.