Internal Controls Are Designed to Accomplish Five Objectives-Comply with Legal

question 45

Multiple Choice

Internal controls are designed to accomplish five objectives-comply with legal requirements, promote operational efficiency, safeguard assets, encourage employees to follow company policy and:

• A) prevent embezzlement.
• B) prevent collusion.
• C) ensure accurate, reliable external audits.
• D) ensure accurate, reliable accounting records.

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Definitions:

Social Readjustment Rating Scale

A scale that measures the stress levels of different life events to predict their impact on an individual's health.

Inherently Stressful

Referring to situations, tasks, or conditions that are naturally predisposed to causing stress or tension.

Chronic Stressors

Threatening events that have a relatively long duration and no readily apparent time limit.

Ambient Stressors

Environmental factors or conditions that cause stress, such as noise, air pollution, or overcrowding.