Before Any Internal Control Procedure Is Initiated,which of the Following

question 14

Multiple Choice

Before any internal control procedure is initiated,which of the following questions must be primarily addressed by a company?

• A) Will this put an end to theft?
• B) Is this the best security money can buy?
• C) How much benefit will be derived from the cost of the procedure?
• D) Will this prevent accounting errors?

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Definitions:

Securities Trading

Securities trading involves the buying and selling of financial instruments like stocks, bonds, and options in financial markets.

Securities Acts Amendments

Modifications made to laws governing the sale, purchase, and offering of financial instruments like stocks and bonds.

Anti-Fraud Securities Act

A legislative framework designed to prevent fraudulent activities related to securities and investments.

Securities Exchange Act

Legislation governing the secondary trading of securities (stocks, bonds, and debentures) in the United States, aiming to provide transparency and fairness.