A Good Internal Control System Does Which of the Following

question 69

Multiple Choice

A good internal control system does which of the following?

• A)Guarantees the efficiency and effectiveness of operations
• B)Reduces the risk of undetected errors
• C)Provides absolute assurance that no errors will occur
• D)Guarantees that fraud will be prevented

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Definitions:

Exemption Clause

A contractual term that limits the liability of one party in certain circumstances or for particular outcomes.

Technologically-Inclined

Possessing a natural interest or skill in technology and the use of technological tools and processes.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.

Condition Subsequent

A condition under which the obligations of a contract will end.