The Best Way to Determine Whether Internal Controls and ERM

question 59

Multiple Choice

The best way to determine whether internal controls and ERM systems are functioning is through:

• A) communication with external users of accounting reports.
• B) managing a strategic balance between data availability and information overload.
• C) monitoring of day-to-day activities.
• D) reporting of ethical violations.

---

Definitions:

Thorndike's Law

A principle of learning that emphasizes the effect of rewards and punishments on behavior, suggesting that actions followed by positive outcomes are reinforced and more likely to be repeated.

Pleasurable Consequence

A positive outcome or reward that follows a behavior, making it likely that the behavior will be repeated in the future.

Involuntary

Actions or reactions that occur without conscious control or choice.

Voluntary

Referring to actions or activities that are done willingly, without any coercion or obligation.