Which of the Following Is TRUE of Internal Control

question 227

Multiple Choice

Which of the following is TRUE of internal control?

• A) A company's outside auditor is responsible for the company's internal control system.
• B) One of the major purposes of internal control is to ensure that the assets are safeguarded.
• C) Internal control procedures tend to diminish the importance of operational efficiency.
• D) Internal controls are only necessary for public companies.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.