Which of the Following Is TRUE of the Internal Control

question 129

Multiple Choice

Which of the following is TRUE of the internal control component-information system?

• A) Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate.
• B) Control procedures are designed to ensure that the business's goals are achieved.
• C) Only authorized users have access to various parts of the information system.
• D) The information system is the "tone at the top" or the culture of the business.

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Definitions:

Utility Function

A mathematical representation in economics that assigns a value to each possible choice or bundle of goods to reflect the satisfaction or happiness a consumer derives from it.

Consumption

The application of goods and services by domestic units.

Interest Rate

The percentage of a sum of money charged for its use, determining the cost of borrowing or the return on investment.

Income

Earnings received by an individual or entity, typically through wages, investments, or business activities, over a certain period.