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:

Automatization

The process of making actions or processes automatic, reducing the need for conscious attention in their execution.

Encoding

The procedure of changing data into a format that allows for its storage in memory.

Information Processing

A theory describing how the human mind takes in, stores, retrieves, and uses information, likening the mind to a computer.

Sensory Storage

The initial process of storing information, taken in through the senses, for a very brief period.