Before Any Internal Control Procedure Is Initiated, a Question Which

question 42

Multiple Choice

Before any internal control procedure is initiated, a question which should be addressed by the company is:

• A)Will this stop all theft?
• B)Is this the best security money can buy?
• C)How much benefit will be derived from the cost of the procedure?
• D)Will this prevent all accounting errors?

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Definitions:

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together, showing the strength and direction of their relationship.

Statistical Measure

A statistical measure is a quantitative value that describes a characteristic of a sample or population, such as mean, median, or standard deviation.

Variables

Elements or factors that can change and affect the outcome of a study or experiment.

Representative Sample

A sample that accurately reflects the characteristics of the population from which it is drawn, ensuring research findings are generalizable.