Each of the Following Is a Feature of Internal Control

question 184

Multiple Choice

Each of the following is a feature of internal control except

• A) limited access to assets.
• B) periodic independent verification.
• C) management compensation packages.
• D) authorization of transactions.

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Definitions:

Expected Value

A calculation in probability theory that represents the average outcome when the experiment is repeated a large number of times.

Conditional Probabilities

The likelihood of an event or outcome occurring, given that another event has already occurred.

Optimistic Decision Maker

A decision-making style characterized by the tendency to expect the most favorable outcome.

Maximax Criterion

A decision-making rule used in scenarios of uncertainty, selecting the option with the maximum possible payoff regardless of the risks involved.