Who Are Responsible for Monitoring Activities Within the Internal Control

question 5

Multiple Choice

Who are responsible for monitoring activities within the internal control system?

• A) external auditors and managers
• B) internal auditors and board of directors
• C) the board of directors and managers
• D) chair of the board and managers

---

Definitions:

Risk-free Asset

An investment that is assumed to have no risk of financial loss, typically represented by government bonds.

Nominal Terms

Values or figures that have not been adjusted for inflation, representing current prices or values.

Treasury Bills

Short-term U.S. government debt obligations with maturities of one year or less, considered a safe and liquid investment.

Optimal Weights

The proportion of each asset in a portfolio that maximizes its expected return for a given level of risk.