Internal Control Does Not Consist of Policies and Procedures That

question 33

Multiple Choice

Internal control does not consist of policies and procedures that

• A) protect assets from misuse
• B) aid management in directing operations toward achieving business goals
• C) guarantee the company will not go bankrupt
• D) ensure that business information is accurate

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Definitions:

Donee Beneficiary

In contract law, a person who is not a party to the agreement but is intended by the contracting parties to benefit from its provisions.

Oil Refinery

An industrial processing plant where crude oil is transformed and refined into more useful products such as gasoline, diesel fuel, and jet fuel.

Detrimentally Relied

A legal principle where a party suffers a loss due to reliance on a promise or statement of another.

Donee Beneficiary

A third party who benefits from a contract between two other parties, especially in the context of gifts or donations.