Which of the Following Statements About Internal Control Is True

question 110

Multiple Choice

Which of the following statements about internal control is true?

• A)Internal auditors ensure that the employees follow company policies.
• B)The treasurer and controller have the same responsibilities.
• C)External auditors are employees of the company.
• D)The control procedures are known as the "tone at the top."

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Definitions:

Raw Material

The basic materials and substances that are used in the production of goods, typically transformed through manufacturing processes.

Property, Plant, and Equipment

Property, Plant, and Equipment refers to the long-term assets owned by a company, used in the production or supply of goods and services, and not intended for sale in the normal course of business.

Fixed Manufacturing Overhead

Indirect manufacturing costs that do not vary with the level of production, such as rent, property taxes, and insurance.

Direct Labor

Direct labor refers to the work performed by employees directly involved in the manufacturing process of products.