What Is the Definition of Internal Control

question 6

Multiple Choice

What is the definition of internal control?

• A) A process designed to guarantee that objectives related to organizational strategy, quality of reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations will be achieved.
• B) A process designed to provide reasonable assurance that objectives related to organizational strategy, quality of reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations will be achieved.
• C) A process designed to provide reasonable assurance that objectives related to ethical values and integrity, quality of reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations will be achieved.
• D) A process designed to guarantee that objectives related to ethical values and integrity, quality of reporting, SOX compliance, and efficiency of operations will be achieved.

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Definitions:

Frustration of Purpose

A doctrine in contract law that can discharge the parties' obligations when a change in circumstances makes the contract impossible to perform as originally intended.

Prevention of Performance

Prevention of performance is a situation where one party's actions make it impossible for the other party to fulfill their contractual obligations, potentially leading to legal consequences.

American History

The recorded events, actions, and developments that have occurred in the United States from its founding to the present day.

Relationships

Connections or associations between two or more people, shaped by emotions, behaviors, and social networks.