Which of the Following Is True of the Internal Control

question 32

Multiple Choice

Which of the following is true of the internal control component-information system?

• A)Internal auditors monitor company controls to safeguard assets,and external auditors monitor the controls to ensure that the accounting records are accurate.
• B)Control procedures are designed to ensure that the business's goals are achieved.
• C)Only authorized users have access to various parts of the information system.
• D)The information system is the "tone at the top" or the culture of the business.

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, reflecting current conditions and market perceptions.

Voting Stock

Shares in a company that grant the holder the right to vote on corporate matters, typically related to the election of the board of directors.

Contingent Payment

A payment that is due only if specific conditions are met, typically used in agreements where future outcomes can influence the amount or timing of the payment.

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.