Which of the Following Is NOT True of a Sound

question 5

Multiple Choice

Which of the following is NOT true of a sound system of internal control?

• A) Implementation of controls involves costs.
• B) A sound system of internal control is the responsibility of management.
• C) All errors and irregularities should be eliminated.
• D) A sound system of internal control is fundamental to the production of reliable financial reports.

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Definitions:

Limitation of Liability Clause

A contractual provision that limits the amount one party can claim from another in case of damage, loss, or injury.

Partial Summary Judgment

A legal decision made by a court on certain aspects of a case without a full trial, resolving some but not all of the issues.

Restraint of Trade

Restraint of trade refers to any activity or agreement that restricts competition or the free operation of the market.

Geographical Restriction

Limitations placed on where a business can operate or where a person can live or work, often found in contracts or legal agreements.