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:

Private-Owned Enterprises

Businesses that are fully owned by private individuals or corporations, as opposed to being owned by the government or public entities.

Communism

Communism is a political and economic ideology advocating for a classless society, where property and production means are owned and controlled by the community.

Fixed Incomes

Earnings from investments that provide a set return, such as bonds or dividends from stocks.