Indicate Whether Each of the Following Statements Regarding Internal Controls

question 40

Short Answer

Indicate whether each of the following statements regarding internal controls is true or false.
_____ a)Internal controls are used to provide reasonable assurance that the objectives of an enterprise will be accomplished.
_____ b)Internal controls can be divided into accounting controls and administrative controls.
_____ c)The mechanics of internal control systems do not vary from company to company.
_____ d)Accounting controls are concerned with the evaluation of performance and the assessment of the degree of compliance with company policies and public laws.
_____ e)Administrative controls are composed of policies and procedures that are designed to safeguard the assets and to assure that accounting records contain reliable information.

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Definitions:

Global Marketplace

An integrated and interdependent worldwide economic trading environment in which goods, services, people, skills, and ideas move freely across national borders.

Wage

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, given by an employer to an employee.

Union Contracts

Agreements between labor unions and employers detailing wages, working conditions, and rights for union members.

Nonunion Workers

Employees who are not members of a labor union and do not have their employment terms negotiated collectively.