Which of the Following Statements About Internal Control Is True

question 103

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 they audit.
• D) The internal control procedures are known as the "tone at the top."

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Definitions:

Sherman Act

A landmark federal statute in the antitrust law that prohibits monopolistic practices and promotes competition.

Domestic Corporation

A company that is registered, established, and operates within the legal jurisdiction of its home country.

Vertical Restraint

Restrictions in agreements between firms at different levels in the production or distribution chain, often related to conditions of sale or purchase prices.

Per Se Illegal

Actions or practices that are automatically considered illegal without the need for further examination of their effects on competition.