Which of the Following Is a Weakness Concerning Internal Mechanisms

question 12

Multiple Choice

Which of the following is a weakness concerning internal mechanisms of accountability?

• A)They are too remote from the activities they are supposed to monitor.
• B)They are biased and interested in public opinion.
• C)They are an elective mechanism and therefore not always used.
• D)They run the risk of being too close to the officers they have to monitor.

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Definitions:

Solvency

The ability of an entity to meet its long-term financial obligations.

Long-term Ability

The potential of an entity or individual to sustain performance or activity over an extended period.

Cash

Currency or funds that a company has in bank accounts and physical money on hand, readily available for use.

Statement of Cash Flows

A financial report that provides a summary of an entity's cash inflows and outflows over a period, categorizing them into operating, investing, and financing activities.