Deciding That Internal Controls Are Effective When They in Fact

question 80

True/False

Deciding that internal controls are effective when they in fact they are not is an example of assessing control risk too high.

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Definitions:

Transfer

The act of moving assets, rights, or obligations from one party to another through sale, gift, or other means.

Possession

The control or ownership of something, whether personal property or real estate.

Demand Instrument

A financial document requiring payment to the holder on demand.

Uniform Commercial Code

A standardized set of laws that regulate financial contracts and transactions in the United States to facilitate commerce.