Bumble Beasley Was Making a Presentation on Internal Control to a Group

question 8

Multiple Choice

Bumble Beasley was making a presentation on internal control to a group of prospective clients.Which of the following statements is the least appropriate for Bumble to make?

• A)Responsibility for internal control should be shared throughout the organization.
• B)All companies must use the COSO definition of internal control as a guide.
• C)Internal controls are not designed specifically to prevent fraud.
• D)Part of internal control is ensuring that a company is making the best possible use of its resources.

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Definitions:

Specific

Clearly defined or identified; precise or particular in detail.

Step-By-Step Sequence

A detailed process or set of instructions presented in a clear, logical order to follow in order to achieve a specific outcome or complete a task.

Interpretation

The action of explaining the meaning of something or presenting one's own conception of a piece of information or artwork.

Critical Thinking Skill

The ability to logically analyze facts, generate and organize ideas, defend opinions, make comparisons, draw inferences, evaluate arguments, and solve problems.