Which Internal Control Procedure Addresses the Idea That the Likelihood

question 120

Multiple Choice

Which internal control procedure addresses the idea that the likelihood of employee fraud or theft is reduced if collusion is required to accomplish it?

• A)Separation of duties.
• B)Physical controls.
• C)Fidelity bonding.
• D)Use of prenumbered documents.

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Definitions:

Rules of Thumb

Simple, heuristic principles or guidelines that provide practical advice for making quick, approximate decisions or solving problems.

Uncertainty

The condition of being unsure about something or lacking complete information or knowledge about outcomes, often leading to hesitation or caution in decision-making.

Representativeness Heuristic

A cognitive shortcut in which individuals judge the probability of an event based on how closely it resembles a typical case, often leading to biases in decision-making.

Stereotypes

Oversimplified generalizations about a group of people that do not take individual differences into account.