Internal Control Is a Plan of Organization and System of Procedures

question 64

Multiple Choice

Internal control is a plan of organization and system of procedures implemented by company ________ and the ________ designed to accomplish five objectives.

• A)internal auditors,employees
• B)external auditors,management
• C)management,board of directors
• D)employees,board of directors

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Definitions:

Policy Toward Dividends

A company's stance or approach regarding if, when, and how much dividend to pay out to its shareholders.

Statement Of Changes In Equity

This financial statement illustrates how a company's equity has changed during a specific period due to transactions with owners, like dividends and investments.

Shareholders' Equity

The residual interest in the assets of a company after deducting liabilities, representing ownership interest.

Liabilities

Financial obligations or debts that a company owes to others, which need to be settled over time through the transfer of assets, provision of services, or other economic benefits.