Which of the Following Is TRUE of Internal Control

question 22

Multiple Choice

Which of the following is TRUE of internal control?

• A)Internal controls are only necessary for large businesses.
• B)A company's outside auditor is responsible for the company's internal control system.
• C)Internal control procedures tend to diminish the importance of operational efficiency.
• D)One of the major purposes of internal control is to ensure accurate,reliable accounting records.

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Definitions:

Field Theory

A psychological theory suggesting that human behavior is influenced by an individual's psychological environment, which consists of various dynamic interactions and forces.

Classic Change Model

A framework for understanding how individuals, groups, or organizations make significant changes through stages of precontemplation, contemplation, preparation, action, and maintenance.

Freezing

A physical process where a liquid turns into a solid when its temperature is lowered below its freezing point.

Refreezing

The final stage in the change process where new behavior becomes integrated into the norm, ensuring stability.