Which of the Following Statements Is True

question 40

Multiple Choice

Which of the following statements is true?

• A) Internal auditors, rather than external auditors, can conduct evaluations of effectiveness of Enterprise Risk Management processes.
• B) Re-adding the total of a batch of invoices and comparing the total with the first total you calculated is an example of an independent check.
• C) Requiring two signatures on checks over $20,000 is an example of segregation of duties.
• D) Although forensic specialists utilize computers, only people can accurately identify fraud.

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Definitions:

Income Tax Deductions

Expenses that can be subtracted from gross income to determine taxable income, thereby reducing the overall tax liability.

Forgery

The illegal act of creating, altering, or imitating objects, documents, or signatures with the intention to deceive.

Federal Common Law

Federal common law refers to laws developed by Federal courts in the absence of detailed statutory guidance, often based on precedent or principles derived from the U.S. Constitution.

Vicariously Liable

The legal principle where one party is held liable for the actions of another party, such as an employer for the acts of its employees.