Which of the Following Statements About Internal Control Is FALSE

question 93

Multiple Choice

Which of the following statements about internal control is FALSE?

• A) Internal auditors insure that employees follow company policies.
• B) The treasurer is the officer ultimately responsible for writing of checks.
• C) External auditors are employees of the company.
• D) The control environment is known as the "tone at the top."

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Definitions:

Accounts Payable

Money owed by a company to its creditors for goods or services that have been delivered or used, but not yet paid for.

Foreign Currency Units

Units of foreign currency that are used as a medium of exchange for international transactions or investments.

Spot Rate

The current market price at which a particular currency can be bought or sold for immediate delivery.

Forward Rate

The agreed-upon exchange rate for a currency transaction that will occur at a future date.