Which of the Following Is Not a Generally Recognized Internal

question 27

Multiple Choice

Which of the following is not a generally recognized internal control procedure?

• A)Internal review by the audit committee of the board of directors
• B)Independent verification of the work of one employee by another employee
• C)Independent review and appraisal by internal auditors
• D)Segregation of duties

---

Definitions:

Loss Carryforward

A tax provision that allows taxpayers to use a current year's losses to reduce taxable income in future years.

Taxable Income

The portion of income that is subject to taxation after all deductions, exemptions, and adjustments.

Equipment

Physical items purchased for use in operations of a business, often subject to depreciation for tax purposes.

Depreciation

The process of allocating the cost of a tangible asset over its useful lifespan, representing wear and tear, deterioration, or obsolescence.