Assessing the Design Effectiveness of the Internal Control System Involves

question 6

Multiple Choice

Assessing the design effectiveness of the internal control system involves:

• A) reviewing the controls that are missing.
• B) reviewing the controls present.
• C) deciding if those controls are operating as intended.
• D) All of the above.

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Definitions:

Planning Fallacy

The tendency to underestimate the time, costs, and risks of future actions and at the same time overestimate the benefits of the same actions.

Intelligence

The ability to learn from experience, solve problems, and use knowledge to adapt to new situations.

Adapt

The process of making adjustments or changes in oneself or behavior in response to new or altered circumstances.

Divergent Thinking

A mental process or procedure aimed at creating original ideas by investigating various possible responses.