Which of the Following Is TRUE of Internal Control

question 22

Multiple Choice

Which of the following is TRUE of internal control?

• A)Internal controls are only necessary for large businesses.
• B)A company's outside auditor is responsible for the company's internal control system.
• C)Internal control procedures tend to diminish the importance of operational efficiency.
• D)One of the major purposes of internal control is to ensure accurate,reliable accounting records.

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Definitions:

Capital Accumulation

The process of acquiring and investing capital in order to increase the wealth or productive capacity of an economy.

Saving

The act of setting aside money for future use, rather than spending it immediately, typically to achieve a financial goal or prepare for emergencies.

Domestic Output

The total value of all goods and services produced within a country's borders within a given time period.

Sociocultural Impediment

Barriers or obstacles arising from social and cultural factors that affect behaviors, practices, and decision-making.