A Properly Designed Internal Control System

question 26

Multiple Choice

A properly designed internal control system:

• A) Lowers the company's risk of loss.
• B) Insures profitable operations.
• C) Eliminates the need for an audit.
• D) Requires the use of non-computerized systems.
• E) Is not necessary if the company uses a computerized system.

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Definitions:

Wages

Monetary compensation paid by an employer to an employee in exchange for work performed, typically calculated on an hourly, daily, or weekly basis.

Bonuses

Additional compensation rewards given to employees as recognition for good work or achievements beyond their regular pay.

Job Evaluations

A systematic way of determining the value/worth of a job in relation to other jobs within an organization to establish a fair and equitable pay structure.

Existing Job

A current position within an organization that has already been established and filled by an employee.